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Sanjay (Student)     02 July 2011

Is TDS deductible?

Hi All,

 

We have received two bills from one of our contractors towards purchase of Laptops amounting90,000/- and towards AMC charges of INR 24000/-. I want to know whether TDS amount is deductible on AMC Charges or not and also tell me the rate of TDS.

Thanks,

Sanjay Bhagat



 7 Replies

CA ADITYA SHARMA

CA ADITYA SHARMA (CA IN PRACTICE )     02 July 2011

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

rectify me if i am wrong

 C.A SHASHANK GOYAL

C.A SHASHANK GOYAL (Chartered Accountant)     02 July 2011

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. 

1 Like
KIYOSH

KIYOSH (TAX CONSULTANT)     02 July 2011

AGREED WITH SHASHANK GOYAL

Anjaly.P.A

Anjaly.P.A ( Article( CA Final))     02 July 2011

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/-

Sanjay

Sanjay (Student)     06 July 2011

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????

CA PARAS BAFNA

CA PARAS BAFNA (Practising CA )     06 July 2011

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

*

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. 

*

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.

 

     

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)     06 July 2011

Originally posted by : Paras Bafna
On transaction of purchase TDS provisions are not applicable. TDS U/s 194C is deductible only on AMC Charges.
*
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. 
*
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.
 
     

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