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Anil (Querist)

29 October 2015 Sir, If any Pvt. Ltd. company appoint Mr. X for Monthly 4000 for any service. And Company paying Rs. 24000 for first 6 Month. I want to know that when TDS liability will be come on Company? at the time of Ist payment of Rs. 24000 OR 2nd payment of Rs. 24000? Company has paid Rs. 24000 and not deducted TDS on Ist payment.

Waiting for your reply.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 October 2015 Section 194J will be applicable. Since Rs 30000/- p.a. threshold limit is not crossed TDS not required to be deducted. If the appointment is only for 6 months (@ Rs 4000/- p.m.) then there is no need to deduct any TDS.

Anil

Anil (Querist)

29 October 2015 Sir, but appointment is for one year. So that limit of Rs. 30000 will cross in 2nd Half.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 October 2015 Then you should have deducted TDS from the very beginning. Now deduct TDS on total amount paid so far and show the same in the TDS return.

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Anil

Anil (Querist)

30 October 2015 Sir, can we deduct TDS together Rs. 4800 from his second payment of Rs. 24000 (for 6 months) and will be shown in the TDS return of March'16? Because we had paid Rs. 24000 for 6 Months.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

30 October 2015 Yes you should deduct TDS on Rs 24000/- from next payment and show it in the return when you deduct the TDS and do not wait for March 2016.

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