Second time payment

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This discussion clarifies whether a company needs to deduct Tax Deducted at Source (TDS) on a second payment to a service provider. The query centres on whether TDS is required if the cumulative transaction value, including this second payment, remains below the Rs 1,00,000 threshold. The consensus is that if both payments fall within the same financial year, TDS should be deducted on the second payment, even if the total doesn't exceed the limit, as the TDS liability is considered triggered.

Marimuthu

Marimuthu (Querist)
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15 November 2023 Dear Experts,
1 A company pays Rs 45,0000.00 to the service provider after deducting the TDS u/s 194C
2 After the certain period, the same service provider provides the service for the amount of Rs 20,000.00
3 Upto this second time service provided by him, the total trasaction value does not cross Rs 1,00,000.00
4 The query
Whether the company needs to deduct the TDS on this second time payment.
Since upto this second time payment, it does not cross the limit of Rs 1,00,000.00
Or once the TDS attracts, it needs to be followed in subsequent transactions.