Interpretation of TDS limits

Dear Members

 

Kindly advise me how to interpret the TDS limits for non salary payments, i.e contractors for EG

under sec 194 C the limit is 30000 Single Bill , (75000 IN year)


Now we are paying a contractor Rs.10000/- shall we deduct TDS on the 10000 payment, because it is not sure that in future the same person will be providing us the services or not, there is possibility or there is not, so in this case how to treat it, also in future in the same year if the amount paid by single single bill exceeds the limit of 75000/- then do we need to deduct the TDS on the amount above 75000 i.e if total payment in year is 80000 do we need to deduct TDS on 75000 or on total 80000. klindly advise me friends , ;)

 

 

 

 

 

Replies (3)

single bill is exempted for now

if the limit exceed anytime in year then the TDS would be applicable on payments made in past also, and that would be added in current payment for TDS purpose.

TDS is applicable on total amount paid during the year, 

Thank you sir , so you mean that when the limit exceeds at that time we have to show that the payment made to contractor at that time is more than rs. 80K ,..whereas real payment might be only 5K  (excess of 75K)

if you r not sure that during the year total bill will exceed 75000 than not deduct tds

but when the total payment exceeds rupees 75000 assume the payment is 80000 than you will have to deduct tds on the whole amt. of 80000

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