Tds on contract

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 HI,
IN CASE OF TDS ON CONTRACT, SUPPOSE THERE ARE TWO PAYMENT TO SAME PARTY ,ONE ON 01/01/2014 OF RS 18000 AND OTHER PAYMENT IS ON 22/02/2014 AMOUNTING RS 35000.
MY QUERY IS RS 35000 WILL SUBJECT TO TDS PROVISION WITHOUT DOUBT, BUT WHAT ABOUT RS 18000 , WHETHER WE NEED TO DEDUCT TDS ON THAT AMOUNT ALSO?????

Sandeep Dharar

Sandeep Dharar (Expert)

18 April 2014 No need to deduct TDS on 18000. Only deduct on 35000. Coz only this is liable to TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 HI,
BUT MY CA IS SAYING THAT ONCE TDS PROVISION IS ATTRACTED , IT GETS ATTRACTED ON ALL AMOUNT CREDITED IN BOOKS
CAN ANY ONE SHARE ANY CASE STUDY OR JUDGEMENT FOR THE SAME

Sandeep Dharar

Sandeep Dharar (Expert)

18 April 2014 No actually this is not the case. If in the FY ur contract amount exceeds Rs. 75K then TDS will b attracted on whole of the amount, but in ur case since it is only 53K(35+18) hence TDS should b deducted only on 35K amount n not on the whole.

Rupesh Jain

Rupesh Jain (Expert)

19 April 2014 U/S 194C APPLY WHEN YOU PAY SINGLE BILL OF EXCEED RS. 35000/- AND TOTAL PAYMENT IN YEAR EXCEED RS. 75000/- THEN TDS WILL DEDUCTABLE.

IF YOUR AMOUTN EXCEED 75000/- THEN YOU HAVE TO DEDUCT THE TDS

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