TDS U/s 194 C Limit

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sahil khalifa (Querist)
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20 March 2020 Dear Experts,

TDS exemption limit U/s 194C is INR 30,000 in case of a single contract and INR 1,00,000 in case of aggregate amount during the financial year.

But what if we have invoice booked from Apr 19 to Feb 20 is Rs 5500 only and One transaction in Mar 20 is for Rs 30400
so, in this case we have to deduct TDS on 30400 only ?? or
TDS on 30400 + Debit note for TDS on Rs 5500 also ??

Please help

CA Kaushal Sharda

CA Kaushal Sharda (Expert)
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20 March 2020 Deduct TDS on the entire amount, i.e. 30400+5500

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sahil khalifa

sahil khalifa (Querist)
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20 March 2020 Thank you for help...

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Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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20 March 2020 Deduct TDS only on Rs. 30,400. Because the aggregate amount will not increase Rs. 1,00,000 during the FY.

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swasti

swasti (Expert)
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20 March 2020 Yes, TDS should be deducted on 30400 only.

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sahil khalifa

sahil khalifa (Querist)
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20 March 2020 Confused , Now Actually what should I do ???

swasti

swasti (Expert)
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20 March 2020 Don't get confused. You yourself are having the solution in your query. The two conditions for TDS are :
1. The amount paid or credited to the contractor in a single contract exceeds Rs 30,000.
2. The aggregate amount paid or credited during the financial year exceeds Rs 1,00,000.

Condition 2 is not applicable as the total contract value during the year is not exceeding Rs 1,00,000. Only Condition 1 is applicable to your query on second transaction of Rs 30,400 , hence you shall deduct TDS on amount of Rs 30,400 only, provided Rs 30,400 is exclusive of GST amount.

Hope now it is clear.

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sahil khalifa

sahil khalifa (Querist)
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21 March 2020 Ok , Clear...
Thanks to all of you.

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