194c applicability on sale bill
Veeresh (Self employed) (123 Points)
23 June 2016
CA Harshal Totla
(Chartered Accountant)
(2229 Points)
Replied 23 June 2016
CA shanky pahoja
(accountant)
(615 Points)
Replied 23 June 2016
as per section 194c of the act, tax need to be deducted on contracts and contracts include work contract where goods is supplied or sold by the customer.
in this case tax is required to be deducted at the rate of 1% or 2% as the case may be only on the amount of contract excluding the amount of goods.if amount of goods is exclusively shown in invoice.
and yes monetry limits of 30000 in single and 75000 in aggregate in a whole year to same person need to be considered.
hope it will help you
sandeep
(Accountant)
(111 Points)
Replied 24 June 2016
Limit has been increased to 1,00,000/- in aggregate in a whole year w.e.f.01.06.2016
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India