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194c payment to contracter tds

CA rohit kasat (PARTNER) (67 Points)

01 August 2012

HI EVERYONE,

I had a doubt regarding TDS to contracter, the clause says that TDS is applicable only if payment exceed Rs30000 per payment and Rs. 75000 per Financial Year, then are these basic Exemptions??? What if The total contract payment in year goes to Rs. 90000.00 for a year say

payment I - 25000

paymnet II - 25000

payment III-25000

payment IV - 15000

do i hav to deduct TDS for 15000. i.e. (90000-75000) or on entire amount 90000.

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25 Replies

sanjeev (articleship) (29 Points)
Replied 01 August 2012

on entire amount 90000.

1 Like

neeraj (CA) (930 Points)
Replied 01 August 2012

on entire 90000 agree

1 Like

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 01 August 2012

on 90000 .... :-)

1 Like

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 01 August 2012

Yes the law relating to TDS says this only that deduct tax on entire 90000 which makes TDS something Tedious.

1 Like

ramakrishna (AM - Finance) (115 Points)
Replied 01 August 2012

on entire amount of Rs. 90000/-, start deducting from 2nd payment onwards.

1 Like

Ravishankar K (Accountant) (461 Points)
Replied 01 August 2012

Originally posted by : ramakrishna

on entire amount of Rs. 90000/-, start deducting from 2nd payment onwards.

But if the amount does not exceed 75000 in that FY the contractor would not be liable for TDS deduction.

1 Like

arun kumar (accountant) (29 Points)
Replied 01 August 2012

on 90000 .

1 Like

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 01 August 2012

Originally posted by : arun kumar
	on 90000 .

Agree with all above....

1 Like

CA Govind Gupta (Proprietor) (152 Points)
Replied 01 August 2012

TDS is to be deducted on whole amt i.e. 90000.00.

1 Like

Santosh V. Thakur (Sr. Accountant) (187 Points)
Replied 01 August 2012

@ Rohit,

Section - 194C -TDS on Contract -TDS exemption as under

Criteria- 1. Bill booking / Payment Rs.30,000/- per bill /payment (whichever is earlier)

Criteria -2. Rs.75000/- per year.

Section applied to any one of Criteria No.1 or Criteria No.2 & NOT for BOTH Criteria

Hope you understand the exemption Criteria.

You should deduct on Rs.90000/- whole amount.

1 Like

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 01 August 2012

on entire amount of Rs. 90000/-, start deducting from 2nd payment onwards.

But if the amount does not exceed 75000 in that FY the contractor would not be liable for TDS deduction.

agree with ravishankar

CA Karan Lodhi (CA and B.com(hons.)) (879 Points)
Replied 01 August 2012

Yes..All are correct

On the whole amt. Rs. 90,000

CA. Sandeep Kumawat (CA) (341 Points)
Replied 01 August 2012

@ Rohit. If agreement provide contract value > 75000 in a year, then its better to deduct TDS from 1st payment itself.

Dharani (Student ) (41 Points)
Replied 01 August 2012

I Agree With all above.As provision under section 194C Contract , per Payment Rs.30000 or P.A Rs.75000 not exceed the limit. so deduct for whole the value.