Hi all,
If an Advertising Agency raises bills on client in a particular F.Y, one exceeding Rs. 20000 but total not exceeding Rs. 50,000 in a year. Whether Client would deduct Tds on Entire Bills raised on him or only on the abovementioned bill?
Also, while computing limit of Rs. 20,000/Rs..50,000 for applicability of Sec. 194C, Whether Service Tax component mentioned in the invoice would be considered?
Thanks in Advance
TDS u/s 194C deductible if a single bill crosses Rs. 20,000 or yearly billing crosses Rs. 50,000/-. In you case since one bill has crossed Rs. 20,000/- TDS deductible. Amount inclusive of Service Tax to be considered.
agree with Aditya sir.....
The word "or" has been used....
TDS u/s 194C deductible if a single bill crosses Rs. 20,000 or yearly billing cross Rs. 50,000/- since one bill has crossed Rs. 20,000/- TDS deductible.
Mr. Aditya Maheshwari
Thanks for your reply.But so far, i have got contrasting views on above matter. As per some, Tds would be deductible only on that one single bill. As per others, Tds would be deductible on all the bills.
Is it specifically mentioned somewhere?Since going by the wordings of what i have read in Mr. Vinod Gupta Sir's book regarding Sec. 194C(3), it seems to me as if Tds would deduct only on that one particular bill. Thats why i am totally confused.
As one bill exceeds the 20K limit, TDS irrespective of whether the amount crosses 50K mark or not should be deducted on the whole bill for the year
Dear Ritesh...
The ACt has mentioned Rs.20000/- single bill OR Rs.50000/- year.....
TDS should be deducted in ur case...
Dear C. Balaji
Where is it mentioned? I may have missed it.
Dear Ritesh,
Case 1
Contract A = 19,000
Contract B = 15,000
Contract C = 15,000
No TDS is to be deducted in this case
Case 2
Contract A = 19,000
Contract B = 22,000
TDS is to be deducted on on Contract "B"
Case3
Contract A = 22,000
Contract B = 22,000
TDS is to be deducted on on both Contracts
Case 4
Contract A = 19,000
Contract B = 19,000
Contract C = 19,000
Contract D = 19,000
TDS is to be deducted on All Contracts.
Case 5
Contract A = 39,000
Contract B = 19,000
TDS is to be deducted on both contracts
Come on mate it is understandable....
Amir Bhai has come with a good example..
I think u will be clear now....
Dear Amir
Thanks for replying.
My case falls under your given Case 2. Thats what i also believe, but not so sure.
Dear Amir
Thanks for replying.
My case falls under your given Case 2. Thats what i also believe, but not so sure.
finally you are clear....happy......
Dear C. Balaji
I would like you to have a look at Mr. Amir's second case..
why Mr...???
Case 2 - Contract B exceeds Rs. 20000/- so deduct TDS....
Mr. C. Balaji
The Contracts which Mr. Amir has mentioned is for same party. So going by what you are saying, wouldn't Tds be deductible on both contracts?
CAclubindia
