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194C Payment to Contractor

rajdip ranpara (proprietor) (139 Points)

29 October 2019

IF PARTNERSHIP FIRM HAS PAID TO CONTRACTOR AGGREGATE AMOUNT DURING FINANCIAL YEAR 2018-19 OF RS. 106200/- WHICH IS INCLUSIVE OF GST RS, 16200/-, WITHOUT GST AMOUNT IS RS. 90000/-, AND NOT A SINGLE BILL AND PAYMENT EXCEED RS. 30000/-.

WHETHER IT WILL ATTRACT TDS U/S 194C DUE TO TOTAL AMOUNT EXCEED 106200/- DUE TO GST PORTION OF RS. 16200/-.

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13 Replies

MOHIT JOSHI (229 Points)
Replied 29 October 2019

No tds is required to be deducted. payment consider excluding gst

1 Like

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 29 October 2019

As per query TDS not applicable...

1 Like

sabyasachi mukherjee (26057 Points)
Replied 29 October 2019

HERE NO PROVISION OF TDS IS APPLICABLE.
ITS MATERIAL BILL.
GENERALLY GST RATE FOR CRUSHED STONE , PEBBLES GRAVEL IS 5%
HSN CODE IS 2517

THE PROVISIONS EXPLAINS AS FOLLOWS:
SEC 194 C AS FOLLOWS:
THE POINT IS NOT A SINGLE BILL ITS UNDER THE SAME CONTRACT AND SAME NATURE OF WORK.

PLS CHECK WHETHER THEY HV GST NO.
AND PAN MUMBER....

Kapadia Pravin (17249 Points)
Replied 29 October 2019

@ rajdip

I understand you paid 106200/- to same contractor during the year and no single biil/payment exceeds 30000/-

Now the total payment , I repeat total payment is 106200/- which is in excess of threshold of 1 lakh under 194C , and hence TDS is APPLICABLE.

However for TDS deduction purpose bill amount say 30000/- (before GST) is considered .

So Total bill payment. 106200
GST @ 18% 16200
Total bills before GST ... 90000/-

So TDS is applicable on 90000/- based on amount of 106200 (exceeding 1 lakh)

2 Like

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 29 October 2019

Tds not applicable if any payments not exceeding 30k as per the query...

sabyasachi mukherjee (26057 Points)
Replied 29 October 2019

ITS MATERIAL BILL. TDS IS NOT APPLICABCLE.
SEC 194 C IS NOT INVOKED...

Kapadia Pravin (17249 Points)
Replied 29 October 2019

194C (5)
No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed thirty thousand rupees :

Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds one lakh rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
--------
In response to Sanyasachi both posts -
Don't raise imaginery or fiction reply
Where in query ....material bill ...
Don't invent ?? Blunder

1 Like

rajdip ranpara (proprietor) (139 Points)
Replied 29 October 2019

IT IS TO CLARIFY THAT CONTRACT PAYMENT DOES NOT MEAN PAYMENT FOR MATERIAL, HERE IT'S PAYMENT TO JOBWORKER . AND I THINK REPLY OF KAPADIYA PRAVIN IS CORRECT........

sabyasachi mukherjee (26057 Points)
Replied 29 October 2019

RAJDIP I THOUGHT ITS AGGREGATE BILL.
SO MY LEARNED FREIND DOES NOT KNOW THE MEANING OF AGGREGATE BILL ITS APPLICABLE ONLY IN CONSTRUCTION COMPANIES.
HE HAS NEVER COME ACROSS SUCH WORD.
NOW THE AGGREGATE WORD IMPLIES TOTAL.
YES SEC 194C IMPLIES TDS RATE AT THE RATE OF 1 % IN CASE OF INDIVIDUAL/ HUF
2% RECIPIENT IS ANY OTHER PERSON

WORK HAS BEEN DEFINED AS ANY OTHER PERSON IN RESPECT OF CONSIDERATION FOR CARRYING OUT ANY WORKS CONTRACT INCLUDING SUPPLY OF LABOUR .
IT SHALL ALSO INCLUDE BROADCATING AND TELECASTING INCLUDING PRODUCTION OF PROGRAMMES FOR SUCH BROADCASTING OR TELEVASTING
CARRAIGE OF GOODS OR PASSENGERS BY ANY MODE OF TRANSPORT OTHER THAN BY RSILWAYS
.
WHO IS LIABLE TO DEDUCT:
ANY PERSON OTHER THAN THE CENTRAL GOVERNMENT
ANY LOCAL AUTHORITY
ANY CORPORATION.
ANY COMPANY.
ANY TRUST.
ANY SOCIETY.
AN INDIVIDUAL.

PAYEMTS WHICH ARE NOT SUBJECT TO TDS :
OTHER SERVICES(KHAITAN @ CO. supra
WORK SHAL NOT INCLUDE MANUFACTURING OR

MOHIT JAIN (ACCOUNTS) (47 Points)
Replied 29 October 2019

Dear Concern

You must deduct TDS, you don't know later on might be liability may fall on your side. its better to deduct TDS. Even you have made aggregate payment 106200/- during the financial year

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 29 October 2019

@ Mr Rajdip.,

As per Your query with as per sec 194C TDS not applicable...

In case You think & satisfied anyone reply then follow that one.

But, No need to say as anyone's reply is correct if all other replies is correct with rules...

@ Others.,

Don't be reply flat or suggestions or choosen or blind way.😠😠😠😠😠.

Pravin Kapadia (8 Points)
Replied 29 October 2019

Originally posted by : rajdip ranpara
	IT IS TO CLARIFY THAT CONTRACT PAYMENT DOES NOT MEAN PAYMENT FOR MATERIAL, HERE IT'S PAYMENT TO JOBWORKER . AND I THINK REPLY OF KAPADIYA PRAVIN IS CORRECT........