Tds on courier services

This query is : Resolved

ATANU BANERJEE (Querist)
Follow

10 February 2016
Hi,
My question is can I deduct TDS when paying Courier Service bill , What is the threshold amount?
If it is 50000.00 then I have to deduct TDS from now on i.e. from Feb'16. But we paid the courier service since April'2015.But the threshold amount is now crossed the limit. So when i deduct TDS what will be the considerable amount . Is any penalty arise if we pay deduct TDS & return from now on although we have paid them from April'15.

I am waiting for expert reply.

Thanks
Atanu Banerjee

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

10 February 2016 1)As per Circular no. 715, 1995 TDS applicable under section 194C on payment made for courier services.
2)Threshold limit for deduction of TDS is Rs.30,000 for singly payment and Rs.75000 for financial year.
3)at any time if your payments made was exceeded threshold limit tds applicable on all payments made till date.So deduct TDS on total payments made to him till date and deduct the TDS from payment.
4)show total amount paid in current quarter( in which tds for earlier payments also done for amount on which total tds deducted) in TDS return sothat no interest and penalty would arise.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now