Contract(94C)says We should pay tds once the limit of single payment exceeds Rs.20,000/- and the total payment exceed Rs.50,000/- in the year.
My Question is : My single payment to a single party exceeds Rs.20,000/- and I paid TDS for that payment and again I paid Rs.5000/- to the same party. For this payment should i needs to deduct TDS?
19 January 2010
You need not to deduct TDS on Rs.5000 if total payment does not exceed Rs.50K during the same financial year to the same party. You can find out this provision in section 194C
19 January 2010
I have a different opinion.The basic purpose of TDS is to deduct tax at the very source of income.A person once liable for being deducted TDS SHOULD remain in the same net and class.If a person is being paid income of Rs 5000- their should be deducted TDS.Practially the same person will not be having problem with this as already on Rs 20000- he has got deducted for. If somebody has clue for certainity in law against above then he may revert.
19 January 2010
Ritesh Ji, if totalpayments exceeds Rs. 50000/- in a fianancial year only then one is liable to deduct tax on each payment after 50000/- Refer sec. 194 C
19 January 2010
Yes.Only Single payment exceeds Rs.20000/- we need to deduct TDS and Up to Rs.50000/- during the FY Not necessary to deduct.So my view Mr.Mahendra Kumar opinion is agreed
20 January 2010
Though it does not seem to be necessary for u to deduct tax from Rs.5000, yet I wud advise u to deduct tax bcos the AO may not agree with yr views and u may face unnecessary disallowances.
20 January 2010
i am of the opinion that once payment to a party has exceeded Rs. 20000,tds should be deducted on every payment made to him during a year.
20 January 2010
MR MAHENDRA KUMAR BAGRECHA,MR vijay kumar gupta AND MR CMA.Ramesh Krishnan NOW WE ARE STANDING THREE VOTES EACH SIDE , SO ITS ADVISABLE TO BE ON SAFER SIDE BY DEDUCTING TDS ON RS 5000-
THIS IS NOT A CASE OF VOTING OT WINNING OR LOSE BUT ACCORDING TO LAW THE AUTHOR HAS NO NEED TO DEDUCT THE TS ON THE PAYMENT OF 5000. IF HIS TOTAL PAYMENT TO THE PARTY DOES NOT EXECEDS 50000 IN A FINANCIAL YEAR
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