Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 I had querey regarding TDS on which Amount should be calculated...
For ex: 194c states TDS for Contractor is 1% & 2% respectively.if payment in excess of 75000 P.A.,
my doubt is how to consider this point and how to make TDS.
That means After exceeding 75000 only i should deduct TDS.,
Please clarify me this point.,
THANKS IN ADVANCE

kodiya mohammed asif

kodiya mohammed asif (Expert)
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16 July 2014 Hi,
if the credit or the payment in pursuance of the contract does not exceed Rs.30,000/-, no deduction has to be made at source. However , if the aggregate of all amounts paid/credited or likely to be paid/credited exceeds Rs. 75,000/- then tax at source is to be deducted.
Example
Bright shops ltd. Has paid following sums to Shivam (individual) for contract of telecasting work.
Date Payment
12/5/2013 18000
22/7/2013 22000
21/12/2013 18000
1/2/2014 10000
22/2/2014 10000
No liability upto 1/2/2014 as no sum exceeds 30000 limit. Liability of Bright Shops ltd for TDS deduction under Section 194C arises on last payment on 22/2/2014 as the aggregation of sum paid during the year exceeds 75000. As deductee is individual, TDS rate will be 1 %. TDS on Contracts deduction will be 780 (78000*10%). Payment for sum of 22nd feb , 2014 will be 10000-780 = 9220

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Sandeep Dharar

Sandeep Dharar (Expert)
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16 July 2014 Dear first note the section clearly.

As per 194C, TDS is applicable as under:-

Single Bill - 30,000/-
PA - 75,000/-

Rate:-
Individual/HUF - 1%
Others - 2%

So if the transactions with the party crosses 30K in single bill(payment) then also u have to deduct TDS u/s 194C. And of course after 75K in the year.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 That means TDS to be deucted in excess of 75000 P.A.,

Sandeep Dharar

Sandeep Dharar (Expert)
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16 July 2014 Yup 75K PA and 30K single payment.

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