TDS on Work Contract and TCS

This query is : Resolved

Nayeemulla S H (Querist)
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30 March 2022 Good Afternoon Professionals,

Our firm is non audit case for Last Financial Year but for this year our turnover is crossed threshold limit so we have to audit but my query is we made payment to contractor of Rs. 1,31,000/- in current year, 1)for this amount should we need to deduct TDS or not. If yes then please let us know the percentage and 2)we paid more than 50 Lakhs to some suppliers should we collect TCS on it.
Thanks and hoping for suggestions.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 March 2022 1 Firm has to deduct 2% TDS on contract exceeding 1 lac.
2 TCS has to be collected by suppliers from you.

Nayeemulla S H

Nayeemulla S H (Querist)
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31 March 2022 Thanks for your response sir. I have one more query our TO is crossed 20Cr for that should we deduct TDS on payment of more than 50L but in this current year only our TO crossed to audit case. From next FY TDS applicable on us or for Current year and our business is Paddy and Rice

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 March 2022 Yes, TDS applicable in such a case.

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