Is TDS deductible?

as amc charges r lower than specified limit hence tds should not be deducted.

rectify me if i am wrong

Hi, under this situation section 194c will be applicable , and TDS may or may not be deducted depending on the situation :

situaition 1 : if during the previous year no other bill of same contractor has been raised then no TDS is required to be deducted  as Rs. 24000 is below the ceiling limit .

situation 2 : if any other bill has been raised thereby crossing the financial yeare ceiling limit of Rs. 70000 along with this bill then TDS is required to be deducted . 

Ex : if other bill of Rs . 50000 has been raised along with this bill then tds is required to be deducted on both. 

AGREED WITH SHASHANK GOYAL

If the payment is made before 30.06.2010, TDS should be made u/s 194C.

If after that date, the limit has been increased to 30000 per paymnt & agregate 75000/-

Hi all,
 

Thanks for your valuable replies.

Dear I am getting confused with you answer. so can you explain me whether TDS is deductible on AMC (Total Bill amount is INR 24,000/-) with the consideration that we have also purchased laptop(Bill amount is INR 90,000)from the same vendor. Actually, I want to know whether the condition of aggregate (i.e. single payment =INR 30,000 or aggregate of small payments => 75,000/-) will apply on both the bills or not????

On transaction of purchase TDS provisions are not applicable. TDS U/s 194C is deductible only on AMC Charges.

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Here AMC charges paid 24000/- i.e. less than 30000/-

If you pay  further AMC in respect of other 2 computers also to the same vendor for a single bill of  48000/ - then AMC charges will be deducted as this will constitute a single payment exceeding30000/- , TDS will be deducted on48000/-.  and not  on72000 as the limit of75000/- has not yet crossed. 

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Do not give more  THAN 3000/-AMC to this person now , otherwise on exceeding the total AMCs to 75000/- TDS is required to be deducted on 24000/- also  WHICH WAS EXEMPT  in the first instance earlier.