Tds on contractor payment

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This query is : Resolved

P.Harish (Querist)

29 December 2014 Hello friends !!

Please help to solve the problem,
We have given cont.to Mr X for 11 months for Machines overhauling ( labour charges only)
from Dec'13 to Oct' 14 @ 7000/- per month

Monthly he has raised Bill & we had paid monthly full amount , no TDS ,
FY 13-14 - 7000 x 4 = 28000/-
FY 14-15 7000x 7 = 49000/-

Whether TDS is applicable ?,IF yes please provide any reference Judgement
Total Contract Value Rs 77000/- but not for any particular year.

URGENT Please

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 December 2014 No. TDS not required to be deducted since annual threshold limit of Rs 75000/- has not been crossed in any year. So in both years TDS deduction not required u/s 194C.

CA Parul Saxena

CA Parul Saxena (Expert)

30 December 2014 yes no tds is required to be deducted as yearly limit of Rs.75000 is not exceeded in any financial year.

Message likes : 1 times

Rupesh Jain

Rupesh Jain (Expert)

30 December 2014 no tds required due to u/s 194C amount is below the limit giving in above section.

P.Harish

P.Harish (Querist)

31 December 2014 Thanks a lot for reply Boss.

Another One Contract is there where Conct Amt is Rs 72,000/-.(Apr14 - Mar15 Rs 6000/-PM) the same has been paid monthly also.

Whether Tds applicable ? limit crossed Rs 30,000/-.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

31 December 2014 No. TDS not required to be deducted since Rs 30000/- limit is for single bill and total payment during the year is also below Rs 75000/- threshold limit.

Message likes : 1 times

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