Tds on contractor payment

This query is : Resolved

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

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Rupesh Jain

Rupesh Jain (Expert)
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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)
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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)
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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.

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