Tds cut off amount doubt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2012 Request you to clarify on TDS :-

Want to Know as how TDS has to be Deducted for 194H.(Cut off Amt Rs 5000/-)

I Have 3 transaction in a Year :

1st ----For Rs1300/-
2nd----For Rs1100/-
3rd---For Rs 2800/-

I understand that we need to deduct 10% on 2800/- as for this transaction only as it exceeds 5000 at this point.

Confirm me if i am correct.

Mohit Naithani

Mohit Naithani (Expert)
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31 July 2012 TDS is to be deduct @ 10 on whole amount paid / payable to vendor (1300 + 1100 + 2800)

Deduct Rs 520 from his last invoice or Rs 2800/-

In short

Total amount paid / payable - 5200
TDS @10% u/s 194H 520

But now you have a bill of amount 2800. hence you have to deduct Rs 520 from Rs 2800.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 July 2012 TDS is required to be deducted on the total amount if the amount during the year exceeds the cut-off limit.

In this case, at the time of booking Rs. 2,800, the total amount exceeds Rs. 5,000.

So, TDS will be deducted on Rs. 5,200.

Deepanshu Agg.

Deepanshu Agg. (Expert)
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22 September 2012 Agreed with Mohit And siddharth

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