Section 194c applicability

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Guest

Guest (Querist)

04 December 2012 Sir,

I want to know, whether engaging a particular travel agency for travelling of directors of a private limited company without entering into contract with him is liable for deduction of tax at source.

Thanks.

CA Parul Saxena

CA Parul Saxena (Expert)

04 December 2012 For the purpose of TDS u/s 194C agreement need not be in writing only it can be oral also...so TDS is applicable if Single payment of Bill exceeds Rs. 30000/- or aggregate payment during the year exceeds Rs.75000/-

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Guest

Guest (Querist)

04 December 2012 Mam,
Thanks for ur reply. But if we are hiring taxi not on regular basis and amount exceeds Rs. 75000/- in a year then what is the applicability.

CA Parul Saxena

CA Parul Saxena (Expert)

04 December 2012 If you expect that amount would cross the limit of Rs.75000/- then it is better to deduct the TDS rather than not to deduct and face the penalties and interest...

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