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What is the threshold limit for TDS on consultants?RS. 20,000/- or Rs.30,000/-? This amout is monthly or yearly? If we are paying 3,000 monthly or 2,000 monthly we have to deduct 10% or not?

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IT IS 30000 FOR SINGLE BILL AND 75000 IN THE YEAR

IF YOU R PAYING 2000 OR 3000 MONTHLY THAN NO TDS

1) THE THRESHOLD LIMIT FOR CONSULTANCY FEES IS 

RS. 30000 PER BILL

RS. 75000 AGGREGATE P.A


2) TDS @ 10% U/S 194J, IF DEDUCTEE PAN NO. IS NOT QUOTED THEN TDS @ 20%


3) NO TDS TO BE DEUCTED ON MONTHLY PAYMENTS OF RS. 2000 OR RS. 3000.



REGARDS,

DEVENDRA

  limit is 30000/- 

if you pay chg 3000/- p.m. than No diduct tds 

TDS WUOULD BE DEDUCTED @ 10% UNDER SEC. 194J, IF PROFESSIONAL FEES IS  PAID OR CREDITED EXCEEDING OF RS. 30000 AT ANY TIME DURING THE FINANCIAL  YEAR

if it is single payment < 30,000

the overal annual payment < 75,000

if monthly payment is 2,000 or 3,000 then there is no need to deduct tds

This limit is applicable under sec. 194C Payment to contractor

if it is single payment < 30,000

the overal annual payment < 75,000

 

Consultancy fee is not a contract its a professional fee, therefore tds would be deducted under section 194J

 

 

 

So..

For example we are deducting 7000/- p.m. So it comes to 7000*12=more than 75,000/- p.a. then we have to deduct 10% on Rs. 7,000/-  ..?

AND if the amount is 30,000/- or more for sigle payment then also 10%..? Is it right..?

U/s. 194J which deals with TDS provisions on payment of fees for professional services, if the aggregate of sums credited/paid during a financial year exceeds Rs.30,000/- TDS is liable to be deducted. 

Hence in your case since you are paying Rs.7,000/- p.m, the annual payment would consequently exceed Rs.30,000/- threshhold limit. TDS would therefore be liable to be deducted @ 10% every month.

 


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