Tds - 194c

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SALONI KOTHARI (Querist)
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01 May 2013 If the payment u/s 194C exceeds in the month of April with Rs. 30000 then there is liability to deduct TDS on it but for the same if in the next month Bill Amount is of Rs. 15000 then also there is liability to deduct TDS? Does it work with the principle that Once applicable for any year then it is applicable in the whole year?
Please quote relevant section for supporting?

Anil Sankar V

Anil Sankar V (Expert)
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01 May 2013 If it exceeds Rs.30000/ year(single payment) or Exceeds Rs.75000(Total of all bills in a year) , TDS has to be deducted u/s194c

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 May 2013 Section 194C

Threshold Limit

Single bill/ Payment Rs 30000/-

Annual Total Rs 75000/- p.a.

If above threshold limit is crossed TDS to be deducted on total amount since it is a threshold limit and not exemption limit.

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SALONI KOTHARI

SALONI KOTHARI (Querist)
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02 May 2013 But my query is regarding TDS payment in the month of MAY. Whether it is applicable to TDS deduct u/s 194C?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 May 2013 If 1st bill is of say Rs 31000/- you are required to deduct TDS since Rs 30000/- crossed. If next bill is say 15000/- you are not required to deduct TDS on this amount since threshold limit is not crossed. But keep in mind if during the year annual limit of Rs 75000/- p.a. is crossed TDS will have to be deducted on bill amounts other than those on which TDS already deducted.

This limit is for individual deductee.

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