Tds threshold limit case
This query is : Resolved
nehaal kadge
(Querist)
17 March 2015
case : there is a big co with many clients paying tds for 194c. in that there is client A, B and C. A has all contracts under 30000 and aggt greater than 75000 p.a. B has all contracts under 30000 and under 75000 in aggt. C has 2 contracts over 30000 but under 75000 in aggt.
1)on which client is tax has to be deducted ???
2) do we have to see threshold limits for every customer or it has to be seen for all customer in aggregate ??
3)does the same applies for other sections such as 194i and 194j relating to their limits of 180000 and 30000 resp ??
1)on which client is tax has to be deducted ???
2) do we have to see threshold limits for every customer or it has to be seen for all customer in aggregate ??
3)does the same applies for other sections such as 194i and 194j relating to their limits of 180000 and 30000 resp ??
CA ALOK KUMAR
(Expert)
17 March 2015
Hello Nehaal
Point no-1, Tds to be ducted U/s 194C on clients A only. No deduction of tds on Client b& C.
Point no-2, yes you have to see threshold limit for all clients individually
Point No-3, yes same law applies in other sections too subject to respective threshold limits under particular section.
Point no-1, Tds to be ducted U/s 194C on clients A only. No deduction of tds on Client b& C.
Point no-2, yes you have to see threshold limit for all clients individually
Point No-3, yes same law applies in other sections too subject to respective threshold limits under particular section.
17 March 2015
Threshold limit is applicable individually.
nehaal kadge
(Querist)
17 March 2015
hello c.a ak nandan
are you sure about client b. i think there wont be tds on client b because it is under 30000 and 75000 ???
are you sure about client b. i think there wont be tds on client b because it is under 30000 and 75000 ???
17 March 2015
1)
TDS on Client A on total amount since Rs 75000/- p.a. limit is crossed. So if aggregate amount is say Rs 76000/- then TDS should be deducted on Rs 76000/-.
No TDS on Client B since neither Rs 30000/- limit or Rs 75000/- p.a. limit is crossed.
TDS on client C should be deducted on two transaction which crossed Rs 30000/- threshold limit.
2)
Threshold limit is to be checked for each party individually. Remember it is threshold limit so TDS to be deducted on total amount on crossing the threshold limit.
3)
These principles are applicable for other section having different threshold limits.
Hope it is clear.
TDS on Client A on total amount since Rs 75000/- p.a. limit is crossed. So if aggregate amount is say Rs 76000/- then TDS should be deducted on Rs 76000/-.
No TDS on Client B since neither Rs 30000/- limit or Rs 75000/- p.a. limit is crossed.
TDS on client C should be deducted on two transaction which crossed Rs 30000/- threshold limit.
2)
Threshold limit is to be checked for each party individually. Remember it is threshold limit so TDS to be deducted on total amount on crossing the threshold limit.
3)
These principles are applicable for other section having different threshold limits.
Hope it is clear.
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