TDS

This query is : Resolved

CA. Jyoti Baid (Querist)
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19 February 2010 Respected All,

TDS should be deducted on which amount:

Bill of contract labour - Rs. 7,000. payment made on 03.12.2009. No TDS u/s.194C deducted.

Bill of contract labour dated 02.02.2010 - Rs.36,000.

Tds u/s. 194C should be deducted on which amount:

Rs. 36000
or Rs.43000

Regards,
Jyoti

CA PRIKSHIT GUPTA

CA PRIKSHIT GUPTA (Expert)
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19 February 2010 if both bills are issued by same person than TDS should be deducted on 43000/- and they are not same person than 36000/-.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 February 2010 Yes TDS should be deducted For Rs.43000/-

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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20 February 2010 it should be deducted on 36000/- tds on 7000/- will b deducted when the total will touch 50000/-

Bimal Thacker

Bimal Thacker (Expert)
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20 February 2010 I agree with Expert Sanjeev, As per your querry it is on Rs.36000.
However if both the invoice are issued against a single contract then it will be on 43000. Further it is likely that in the year labour charges of the same contractor is going to cross 50,000 then also it is advisable to deduct TDS on any amount without waiting for limit cross.

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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20 February 2010 Thank you for the reply.

This issue has aroused because both the bills are from the same party.

Both are invoice are issued under two different contracts. The total payments during the year are not going to exceed Rs.50,000.

Since one single payment exceeds Rs.20000, TDS is deducted on second bill. But total payment doesnot exceed Rs.50,000, then why TDS should be deducted on the total amount of Rs. 43000/-

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 February 2010 Dear Jyoti Baid

Rs.20000 or Rs.50000 provision under 194C applies irrespective of individual contract divided in to 2 or more contract to avoid TDS

Deepak Goel

Deepak Goel (Expert)
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20 February 2010 Agree with Sanjeev Kr Jain

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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26 February 2010 agree

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