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Doubt in TDS

RaGhAvEnDrA RoYaL (Articles) (68 Points)

02 June 2016

I have a small doubt in TDS,
For some sections there is a limit for example 194C now ₹1,00,000

Ex:-
One person paid

On first quarter 15000
Then in 3rd quarter paid 90000.

Now my doubt is whether i have to deduct on entire amount i.e. 105000 or 5000
If i deduct on 105000 then for 15000 interest is applicable or not ??

I'm getting confused on which amount i have to deduct ??

Pls anyone clarify me🤔

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13 Replies

Ankush (Student) (1309 Points)
Replied 02 June 2016

As per my knowledge tds is to be deducted on entire amount once the threshold or limit is exceeded

RaGhAvEnDrA RoYaL (Articles) (68 Points)
Replied 02 June 2016

is there any interest for dealy payment??

Ruchi (CA) (1410 Points)
Replied 02 June 2016

Tds should be deducted on entire amount and no interest is payable for this . Because there is no delay , the liability to pay or deduct 5ds did not exist before.

RaGhAvEnDrA RoYaL (Articles) (68 Points)
Replied 02 June 2016

thank you very much

CA. Binay Krishna, (Chartered Accountants) (35 Points)
Replied 02 June 2016

Yes on entire amount of Rs 105000/-

Saurav (CA) (211 Points)
Replied 02 June 2016

You have deduct tax on last bill on whole amount that is 105000 and you have pay tax on next month till 7th day of that month

no interest is required

CA.Vinita Gupta (Deputy Manager- Finance) (2918 Points)
Replied 02 June 2016

Tds has to be deduted on Full amount 15000+90000= 105000

Anshul Mittal (Freelancing) (741 Points)
Replied 02 June 2016

https://www.charteredclub.com/section-194c/

This Link will solve your doubt on 194C, the example mentioned in this article helped me too.

Sukhwinder Singh (accountant) (21 Points)
Replied 02 June 2016

TDS 1% Deduct on 105000 /-

if pan number is not available on deductee. then TDS Deducted 20% on 105000.00

Joginder (Service) (36 Points)
Replied 02 June 2016

TDS would be deduct on 105000 and no interest to be charged because at that time sealing limit wasn't applicable to TDS.

CA Mohit Khattar (Practicing Chartered Accountant) (50 Points)
Replied 03 June 2016

Yes TDS should be deducted on the entire amount and no interest shall be levied for late deduction as liability to deduct tds arises when you exceed the threshold limit.