TDS on freight charges for AY 2020-21

This query is : Resolved

Mahabir Prasad Agarwal (Querist)
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04 December 2019 TDS is to be deducted u/s. 194C on freight charges paid if single payment exceeds Rs.30000/- and yearly payment exceeds Rs. 1.00 lac. If I paid freight Rs.10000+10000+10000 during April to June,19 and during July I paid Rs. 80000/-. Now during July,19, whether I have to deduct TDS on 30000/- or on 110000/- ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 December 2019 Deduct TDS on 110000.

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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04 December 2019 TDS to be deducted at the time of payment or accounting whichever is earlier. When threshold limit exceeds, TDS is to be deducted for the whole amount ( Ie TDS not deducted eralier ( as the amount is within threshold limit at that time+ current payment).

In your case TDS is to be deducted for Rs.110000 ( 80000 + 30000) @ 1% Rs.1100/- in July 19 and balance payment of Rs.78.900/- ( Rs.80000-1100) to be given to transporter.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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04 December 2019 Thanks for your quick reply

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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04 December 2019 Sir, if a single freight payment exceeds Rs. 35,000/- and a payment of 10000/- is also made in same month. Whether TDS will be deducted on 35000/- or on 45000/- ?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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04 December 2019 If single payment exceeds Rs.35,000/-, then TDS to be deducted for that amount. TDS need not be deducted for Rs.10,000/- as long as the total amount paid or accounted within the threshold limit.

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