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Section 194C doubt

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KANNAN GOPALAKRISHNAN

23 Points Posted on 01 June 2021

Is tds required to be deducted by a company for a AMC contract payment if amount is greater than Rs 30,000 u/s 194c

Replies (8)

Quick Summary

This discussion clarifies the applicability of Section 194C of the Income Tax Act regarding Tax Deducted at Source (TDS) on Annual Maintenance Contracts (AMC). TDS is required if a single contract payment exceeds £30,000 or if the aggregate payments for a contract surpass £1,00,000 in a financial year, provided the company is liable for a tax audit in the preceding year.

Vishwanath Pattanshetty

31 Points Posted on 01 June 2021

No tds if single contract is upto ₹30,000 or aggregate contract is upto ₹1, 00,000 in PY
this condition is applicable if your turnover exceeds 1cr in case of business and ₹50lakhs in case of profession.

KANNAN GOPALAKRISHNAN

23 Points Posted on 01 June 2021

Ok so if liable to tax audit in preceeding Fy

Vishwanath Pattanshetty

31 Points Posted on 01 June 2021

Yes if you are liable to tax audit, then tds will be deducted if single contract is more than 30,000 and aggregate contract exceeds 1 lakh in PY

Sivaramaraju G

Learner

2398 Points Posted on 01 June 2021

TDS shall be deducted u/s 194C in following cases

Single payment of a contract exceeds Rs. 30,000
Aggregate payment of a contract exceeds Rs. 1,00,000 during the year.