The amendment to Section 194C with effect from 01/06/2007 by the Finance Act 2007 made it mandatory for individuals and specififed HUF's to deduct TDS on payments made to Contractors. The query is as under -
Mr. X an individual assessee whose accounts were audited in the preceeding Assessment Year i.e AY 07-08 has made payments to contractors in one or more occassions to the tune of Rs. 45,000/- during the months of April and May 2007. He further makes payment of Rs. 6,000/- in June 2007. Please guide as to whether TDS will be applicable on Rs. 6,000/- only or on Rs. 51,000 being the total amount paid to the contractor as the provisio to the Section has used the words "the aggregrate of such payments made or likely to be made..............."
CAclubindia
