Recovery of tds on cash payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2016 Sir,
Usually Cash Payment allowed up to Rs.20,000/-
TDS has to be deducted in case payment exceeds Rs.30,000/- to any firm/individual during the year.
Please clarify that if each time cash payment is less than Rs.20,000/- can it be paid duly deducting the TDS
irrespective of the limitation.
Also suggest which mode is better either bank or cash in this case and why.

Thank You Sir,

With Regards

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

16 December 2016 First of all there are various sections under which TDS is deducted. So u must have to clarify the nature of the transaction then only u can judge the limit of 30K or whatever. So please elaborate ur query, and regarding payment I'll suggest Bank is the best mode for payment. And in case of TDS involvement U must pay through bank.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2016 SIR,
Professional charges payment is to made with 10% TDS.
My doubt is if payment is less than 20,000/- can it be paid
in cash duly deducting TDS number of times in a year instead of
payment through cheque.

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

17 December 2016 Better to pay professional charges through bank and deduct TDS(if applicable as limit is 30K in a year u/s 194J). Yes it can b paid by cash also if its less than 20K. But I'll advice to pay only through bank mode.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now