Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2013 Dear All,

In case of TDS of interest (94A) & Brokage (94H) the limit of 5000 should be considered of single Party ?
Eg. I have to pay brokerage in total Rs. 8714 to Mr.A Rs. 4087 and to Mr.B Rs. 4627.
Now am i require to deduct tds as the total Rs. 8714 as the limit exceeds Rs.5000? or i should not deduct TDS as the limit in each case does not exceed Rs. 5000.
Please clarify Along with reason.

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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09 May 2013 dear.. limits mentioned in all the TDS sections apply only on a single person not in an aggregate..

therefore in the example that you have taken above no requirement to deduct TDS because payment made to both the persons is below 5000/-

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Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2013 Can You give me any section reference mentioning specifically.

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CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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10 May 2013 dear....

in all the sections it is clearly mentioned that any person responsible for paying ANY RESIDENT....

it means it talks about a person not amount paid to all the persons in aggregate..