Urgent query regarding section 194c

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HARSHITA GUPTA (Querist)

14 April 2014 Hello Experts,
one of my client is paying his contractors following Amts:--
1 fixed monthly contract amt.
2 local conveyance exp
3 printing & stationery exp.
4 tea & water exp.
5 office exp.

all these bill are in the name of company not in the name of contractor
But company gives cheque in the name of contractor.
my query is that u/s 194c on which amt tds will be deduct?

Thanx & regards
Harshita Gupta

Sandeep Dharar

Sandeep Dharar (Expert)

14 April 2014 TDS should b deducted on Contract amount if it crosses the amount mentioned u/s 194C.

HARSHITA GUPTA

HARSHITA GUPTA (Querist)

14 April 2014 But sir, as per section 194c "any sum paid" is considerable for calculation of limit of Rs. 75000

HARSHITA GUPTA

HARSHITA GUPTA (Querist)

14 April 2014 But sir, as per section 194c "any sum paid" is considerable for calculation of limit of Rs. 75000

Sandeep Dharar

Sandeep Dharar (Expert)

14 April 2014 It is 75000 in aggregate & 30000 in a single payment. And it is the amount what u actually pays to the Contractor. If u mention the payment line tea, conveyance, Printing ect. separately then TDS will b deducted on contract amt. only. But if the payment is made in aggregate then TDS will b deducted on the whole amount.

HARSHITA GUPTA

HARSHITA GUPTA (Querist)

14 April 2014 but sir reimbursement is also consider for limit of rs. 75000
and all these payments are reimbusement
and
what about payment of local conveyance exp??

Sandeep Dharar

Sandeep Dharar (Expert)

14 April 2014 Reimbursement means which satisfy the nature of the transaction. Suppose u r an employee of a concern & u r receiving salary, suppose u go for a off. purpose & the co. pay the conveyance exp. as reimbursement, so TDS will b deducted on ur monthly pay but not on reimbursement. But if this is a contract between u n ur employer that u will get monthly reimb. then TDS will b deducted on ur salary including Con. Reimb. Same is the above case. if there is a contract between both the parties then TDS will b deducted on the whole amount otherwise only on monthly contract fig.

HARSHITA GUPTA

HARSHITA GUPTA (Querist)

14 April 2014 sir my client is acourier service provider, and payment of local conveyanc exp. is to meet out the conveyance exp. beared by contractor

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