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TDS on Contract Payments

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(Querist)
14 July 2007 Sir,
As per section 194C, No TDS to be deducted if the payment does not exceeds Rs.20000 in a single payment or Rs.50,000 in aggregate in afinancial year. What my query is a client made number of transactions in a year. up to half of the year, such contract transactions does not exceeds Rs.50,000/- hence the company not deducted TDS but rest of the year the contract transactions exceeds Rs.50000. Now the company is liable to deduct TDS on contract payments. from which amount the company to be deduct TDS either including basic limit Rs.50,000 or Excluding Rs.50,000/- ?

Kindly clarify.
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Shashi Mohan Jha

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Shashi Mohan Jha (Expert)
14 July 2007 you hav eto take total financial year, the moment pmt exceeds Rs50,000, TDS has to be deducted in all amount
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Sanjeev Kumar Varshney

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Sanjeev Kumar Varshney (Expert)
14 July 2007 The ceiling of Rs 50000 is for full FY and as & when payment exceeds Rs 50000/- entire amount is liable for TDS deduction.
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