Applicablity of 194C

U/s 194C tax is requied to be deducted at source where the amount paid exceeds Rs. 20000/- in a single payment. if you r processing 2 bills but making a single payment u need to deduct TDS u/s 194C.

 from 1-7-2010, the limit is incresed to Rs.30000/- for single transaction and Rs.75000/- for aggregate of the transactions during the Financial year

Dear Indhumathi V

TDS is to be deducted either at the time of credit of such sum to the account of the payee or at the time of payment  thereof in cash/by issue of cheque/by any other mode, WHICHEVER IS EARLIER.

Tax shall not be dedutible u/s 194C if the following two conditions are satisfied:

• the amount of any (single) sum credited or paid (or likely to be credited or paid) to the payee does not exceed Rs. 20,000/- (Rs. 30,000/- from 01/07/2010),

• the aggregate amounts of such sums credited or paid (or likely to be credited or paid) to the payee does not exceed Rs. 50,000/- (Rs. 75,000/- from 01/07/2010)

If no TDS was deducted from previous payment and Limit cross by the proposed payment then TDS should be deducted from the total payment made during the F.Y.

Thank you sir