About applicabilty of TDS

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I have a quiry and i would like to ask that through a illustration
i am running a hotel and i get our books of accounts bind up from a binder who is registered in GST, after finish work he raise a invoice to me with gst, in his bill he charged for his services and raw material of binding which he used in binding. So i want to know that would we have to deduct TDS during payment of that bill.
Replies (2)
As per section 194C where a single payment made to a single person exceed Rs.30000 (example if u made a payment of 30,001 rupees to X.u r required to deduct tax at 1% if payment is made to an individual or HUF ) (2% in case of any other person like company)
However ur in a proprietary business, so if ur turnover didn't exceed Rs 1 crore in immediately preceeding financial year i.e 2016-17 no tax is required to be deducted.
note:I am a CA IPC student so I am still at learning stage it is better to confirm the same from ur CA as well.
Also , if a single payment/aggregate payment to a single person in a day exceed Rs.10,000 , it is better to pay such by Account payee draft/cheque /ECS /debit or credit card otherwise u will not get deduction of such income , while computing taxable income from ur hotel.(I am assuming u haven't opted for presumptive tax scheme).
Note: I forgot to mention that is ur aggregate payment exceed Rs 1,00,000 in f.y then also, ur required to deduct TDS. as I mentioned above , i.e 1% if payment is made an Individual or h.u.f
2% if payment is made to others like company/ firm etc.

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