TDS

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MANAN VORA (Querist)
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18 March 2011 Our Firm is going to pay an advertising agency charges for the display of our advertisement.

There are two bills of the party amounting Rs.27575/- each. So whether TDS will be applicable. Bills are for the Two different months.

Are you sure that the word used is a single bill in section ?

if a single payment of above two bill is made then the amount of Single payment exceeds Rs.30000/- Limit.

Reply asap.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 March 2011 TDS deduction is not required if the bill date is on or after 01.07.2010.

Limit of single bill u/s 194C w.e.f. 01.07.2010 is Rs 30000/- and annual payment is Rs 75000/-.
As single bill is below 300000/- and annual payment not crossing Rs 75000/- TDS not required to be deducted.

Rajan Kapoor

Rajan Kapoor (Expert)
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18 March 2011 In you case TDS is not required u/s 194C since single bill is less than Rs. 30000/ and total annual bill amount is Less than Rs.75000/-

MANAN VORA

MANAN VORA (Querist)
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31 May 2011 Are you sure that the word used is a single bill in section ?

if a single payment of above two bill is made then the amount of Single payment exceeds Rs. 30000/- Limit.

Reply asap.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 May 2011 The limit is for single transaction whether paid or credited (whichever is earlier). So if amount paid at a time is more than Rs 30000/- Before crediting the bill, though it relates to two bills below Rs 30000/- , TDS is required to be deducted.

If the amount paid/payable or credited/likely to be credited to the contractor/sub-contractor does not exceed Rs.30,000/- in a single instance (Applicable from 1.7.2010. previously it was Rs.20,000). However, the total of amounts paid or credited during the financial year should not exceed Rs.75,000/-. If the said amount exceeds Rs.75,000/-, then, the liability for payment arises on the whole of amount paid or credited and not on the amount in excess of Rs.75,000/-.( The limit of Rs.75,000 is applicable from 1.7.2010. Previously it was Rs.50,000)

MANAN VORA

MANAN VORA (Querist)
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31 May 2011 ????????

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 May 2011 Your Case--
Bill 1- Rs 27575/-

Bill 2- Rs 27575/-

Annual limit not crossed.

Question of Single transaction limit.

Situation 1)If bills are booked first and the payment made later....TDS not required to be deducted. (Must have two separate bills)

Situation 2) If Say payment is made in advance More than Rs 30000/- and Bills credited later TDS to be deducted at the time of payment.

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