Hi........... In case of sec 194 c, if one bill exceeds RS . 30000 , say 35000 and aggregate to the same party is less than 75000 during the year, is dere any need to deduct tds on d whole amt , say if aggregate is 72000 . ? Or we shud nly deduct tds on 35000 only ?
CA Chirag
(Chirag Sheth & Associates)
(1183 Points)
Replied 30 October 2013
if single invoice is of more than 30000, you need to deduct tds on whole amount. Say amout is 37000 the in this case tds is required to be deducted on 37000, irrespective of the fact if there is no more transaction with that party.
thanks
Ankit Jain
(Article Assistant)
(45 Points)
Replied 30 October 2013
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 30 October 2013
tds applicable on total payments made to him
CA DILIP KUMAR
(Assistant Manager(Taxation))
(45 Points)
Replied 31 October 2013
| Originally posted by : Arun Anton Ashok | ||
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Hi........... In case of sec 194 c, if one bill exceeds RS . 30000 , say 35000 and aggregate to the same party is less than 75000 during the year, is dere any need to deduct tds on d whole amt , say if aggregate is 72000 . ? Or we shud nly deduct tds on 35000 only ???????????????????????? |
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Dear Arun
In your case You should deduct TDs on only Rs.35000/- since it is exceeding threshhold limit of single transaction of Rs.30000/- .
There is no need to deduct Tds on aggregate amount since it does no exceesd Rs.75000/-
peer aajiz
(STUDENT)
(51 Points)
Replied 31 October 2013
The Payer has to deduct tax on full amount i,e 37000 & not 72000 , becoz the payment exceeded the amount which should pay in single transaction i,e 30000
Rejitha Rajappan
(Chartered Accountant)
(62 Points)
Replied 31 October 2013
You must deduct TDS on 35000/- since it crossed the limit of 30000/- for single transaction. Since the aggregate amount does not exceeds 75000 no need to deduct tax.
Accounting Home Services
(Finance Executive )
(733 Points)
Replied 31 October 2013
AGREE WITH REJITHA
CA Dhruva Kalamanji
(Chartered Accountant )
(1996 Points)
Replied 31 October 2013
According to section 194c subsection (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 seventy-five thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
Now let us analyze how the sub section (5) applies:
Ravi Kumar
(Audit & Taxation Executive)
(26 Points)
Replied 31 October 2013
Sandeep
(ASST.MANAGER ACCOUNTS)
(1751 Points)
Replied 31 October 2013
| Originally posted by : DHRUVA K S | ||
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According to section 194c subsection (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 seventy-five thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section. Now let us analyze how the sub section (5) applies: Check the total amount credit or paid or likely to paid is more than 75,000 If yes then this section will apply to all the payments which is made to the party If no then this section will apply to only those transaction which are more than 30,000 And hence in your case the aggregate amount is paid is only 72,000 therefore this section will applicable to only on those payments which crosses 30,000 |
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AGREED..FOLLOW THE SAME.
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 31 October 2013
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