Practical issue in sec 194c
This query is : Resolved
16 May 2013
Hi Experts
I have a most practical query and want to know if payment to a party in 1st QTR is 25K and in second it is 25K and in third it is 20K and in 4th Qtr it is 25K.
Please answer a simple question with due evidence(or reference of act) the QTR in which TDS should be deducted and on which amount?
I have a most practical query and want to know if payment to a party in 1st QTR is 25K and in second it is 25K and in third it is 20K and in 4th Qtr it is 25K.
Please answer a simple question with due evidence(or reference of act) the QTR in which TDS should be deducted and on which amount?
16 May 2013
In the 4th quarter it should be deducted on 95k
16 May 2013
thanks a lot expert, can u provide some act language on the same
16 May 2013
Under section 194C TDS is to be deducted when the single payment exceeds Rs.35000/- or payment in aggregate exceeds Rs.75000/- in a year. In your case upto 4th quarter no single payment exceeds Rs.35000/- and in the 4th quarter it gets exceed Rs.75000/- so TDS is to be deducted on whole amount i.e.Rs.95000/-
16 May 2013
i think the threshhold limit is 30K for single payment instead of 35K
16 May 2013
AS PER 194C SUBSECTION(5)
(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed 60[thirty] thousand rupees :
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds 61[seventy-five] thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
CONCLUSION,
As first condtion will not applicable to u as single bill not exceeds 30000
and as in ur case total amounts credited in financial year exceeds 75000,.
TDS is applicable to you in 4th payment and you need to deduct tds on total amount credited to the party in such financial year
i.e, TDS applicable on 95000
(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed 60[thirty] thousand rupees :
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds 61[seventy-five] thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
CONCLUSION,
As first condtion will not applicable to u as single bill not exceeds 30000
and as in ur case total amounts credited in financial year exceeds 75000,.
TDS is applicable to you in 4th payment and you need to deduct tds on total amount credited to the party in such financial year
i.e, TDS applicable on 95000
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