Tds u/s 194c above rs 70,000/-

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2012 Dear Sir

During the year 2011-12 , We had engaged a person for some Repair & Maint work. Upto Feb-12 his total bills were below the limit of Tds = Rs 69000/- ( Rs 15000+18500+17200+18300 )hence we could not deduct TDS, but in the month of Mar'12 some extra work done of Rs 14000/-.

now my query is that on what amount we have to make TDS ? , also pls provide reference of any act/ rule/judgment

Kindly reply urgently

SANYAM ARORA

SANYAM ARORA (Expert)

14 September 2012 As per Section 194 C of the Income Tax Act, if you are making payment to any person who falls under the category of Contractor & Amount exceeds Rs. 75000 in the whole year then you are bound to deduct tds @ 2% for Companies & 1% for Individual & HUF.

SANYAM ARORA

SANYAM ARORA (Expert)

14 September 2012 As in your case the total amount has exceeded the above mentioned limit, so you are liable to deduct tds & deposit with the Government.

SANYAM ARORA

SANYAM ARORA (Expert)

14 September 2012 If you want to know more -

Go through the Link-

https://www.caclubindia.com/articles/tds-u-s-194c-applicability-in-certain-cases--12685.asp#.UFMUjrLibFY

Regards

sanyam

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

14 September 2012 You are required to deduct TDS on total amount of Rs 83000/- on the date when the threshold limit of Rs 75000/- p.a. is crossed.

For this no judgment required as it is in accordance with rules laid down in Section 194C.

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