Section 194J

998 views 11 replies

Sandeep Sharma

Accounts executive

552 Points Joined July 2017

If i receive monthly bill from consultancy of Rs. 5k from jan month and in the month of July it exceeds threshold limit of 30k. So do i need to deduct tds from July or from January??

Replies (11)

Kunal Mittal

FINANCE OFFICER

580 Points Joined July 2012

The threshold limit are: single bill of RS. 30000 or aggregate of RS. 100000 in one year.

rama krishnan

12244 Points Joined May 2017

for professional payments, the threshold limit on the whole is 30000 per f y

sunil jagatha

47 Points Joined October 2015

Hello Sandeep,

As per section 194J, In case of consultancy payments, if payment exceeds in aggregate Rs30,000 we have to deduct TDS

But in this case your question might be wrong. If it is right, there is no deduction of TDS because Jan-Mar is one financial year of amount of Rs.15,000 and Apr-Jul is another financial year of amount of Rs.20000. So there is no exceeding of Rs.30000

If any further details call me at 8317543300

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Yes... I agreed with Mr Sunil Jagatha...

@ Sandeep Sharma.,

If You are continuing the consulting then You can deduct TDS or wait the limit crossed. After You will deduct.

Sandeep Sharma

Accounts executive

552 Points Joined July 2017

Thank you sunil sir...so actually if i continue receiving of consultancy bills from April 2019 to March 2020 of Rs. 5k monthly then i need to deduct tds from October 2019 or from April 2019?? plz help sir

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

You can deduct TDS from October on total value...
If it's reached Rs 30k on October then deduct TDS on 30k...

So, simple.

Sandeep Sharma

Accounts executive

552 Points Joined July 2017

Ok thank you sir raja sir so in that case do i also need to pay interest on late deduction or it will be waived off ethically??

chandrasekhar Pal

Sr. Accountant

27 Points Joined July 2019

consultancy fees /Profession fee(194J) Threshold limit single Invoice INR 30,000/- ,its not mandatory to deduct as tds u/s 194J..

Suresh Thiyagarajan

Student

3986 Points Joined July 2018

1. There will not be any interest since provision itself allows not to deduct TDS when the threshold limit had not crossed Rs. 30,000 in a FY.
2. But TDS u/s 194J @ 10% should be deducted on the entire payment made till date. For example Total payment made till date Rs. 35,000 and last payment is Rs. 5,000 for the month of July. TDS for the month of July should be deducted on the entire Rs. 35,000 @ 10% which comes to Rs. 3,500 and remit the same within the due date.
Please correct me if the above solution has an alternative view.