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Tds

Nishtha Narielwala (Tax Consultant) (131 Points)

27 April 2012

Hi,

Suppose I am contractee & have credited the contractor's a/c with 3 entries of Rs.20,000 each, but while making payment for the same I issue a single cheque of Rs.60,000. Am I liable to deduct TDS?

As far I believe I am supposed to deduct tax at source. Is it correct?

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17 Replies

(Guest)

yes, you have to deduct tds

1 Like

(Guest)

Originally posted by : Anupama
	yes, you have to deduct tds

Yes, I agree with with Anupama you are undobtedly liable to deduct tax u/s. 194C of Income tax

1 Like

CA Syed Raza Abbas Rizvi (PROPRIETOR ) (631 Points)
Replied 27 April 2012

TDS is applicable in this case

1 Like

valji (Accounts manager-MBA) (2150 Points)
Replied 27 April 2012

TDS IS APPLICABLE

1 Like

Nitil Kr. Agarwala (Persuing CS) (264 Points)
Replied 27 April 2012

Yes liable to deduct TDS under current sitaution as the threshold limit of 30,000/- is been crossed.

1 Like

Rakesh Kumar (Accountant) (25 Points)
Replied 28 April 2012

sir i am confused the above question.becasue the TDS is applicable only these conditions:

1. if one bill amount is above 30,000.

2. if the total bill amount in a year above 75,000.

so suggest me the above condition how we should deduct TDS.

Please.............................

Thanks & regards

Rakesh Kumar

Mob: 9953780426

(Guest)

in the above question it is not mentioned that these payments are fir full year.. assumed that further payments will be done to the same party... :-P

1 Like

CA Sherya (Executive) (29 Points)
Replied 28 April 2012

TDS is liable to be deducted if:

Single Bill is more then 30,000 & total payment exceeds 75000 in a year.

If you are not going to pay further amount which can exceed your limit, then it was not required to deduct TDS.

Nishtha Narielwala (Tax Consultant) (131 Points)
Replied 28 April 2012

What I meant to ask was that even though I have credited the account of the contractor with an amount of less than Rs.30,000 but at the end since I am making a "single" payment of Rs.60,000 would I be liable to deduct tax, since my single payment has exceeded Rs.30,000?

Hope the question is more clarifactory now.

Thank u.

Nitil Kr. Agarwala (Persuing CS) (264 Points)
Replied 28 April 2012

Yes u are liable to deduct TDS for paying the amount in single instrument. Hope you are convienced by this.

1 Like

anony (MANAGER) (145 Points)
Replied 28 April 2012

YOU NEED NOT DEDUCT TDS IN THIS CASE, AS YOU ARE MAKING PAYMENT AGAINST THREE BILLS & THE LIMIT OF RS. 75,000/- P.A. HAS NOT BEEN CROSSED BY YOU. IF YOU MAKE MORE PAYMENTS & THE TOTAL PAYMENT GETS CROSSED OVER 75,000/- IN THAT PARTICULAR YEAR, THEN ONLY YOU'LL HAVE TO DEDUCT TDS.

1 Like

Nitil Kr. Agarwala (Persuing CS) (264 Points)
Replied 28 April 2012

Originally posted by : Lalit Dhabria
	YOU NEED NOT DEDUCT TDS IN THIS CASE, AS YOU ARE MAKING PAYMENT AGAINST THREE BILLS & THE LIMIT OF RS. 75,000/- P.A. HAS NOT BEEN CROSSED BY YOU. IF YOU MAKE MORE PAYMENTS & THE TOTAL PAYMENT GETS CROSSED OVER 75,000/- IN THAT PARTICULAR YEAR, THEN ONLY YOU'LL HAVE TO DEDUCT TDS.

Dear Lalit Ji,

Agreed with u that the total threshold limit of 75,000/- had not been crossed but what abt the limit of 30000/- paid by single instrument limit.

Kindly check the same.

anony (MANAGER) (145 Points)
Replied 28 April 2012

DEAR ALL,

THE THRESHOLD LIMIT OF RS. 30,000/- APPLIES ONLY WHEN A SINGLE CREDIT/PAYMENT IS MORE THAT 30,000/-

& BILL CREDITED OR PAYMENT MADE WHICHEVER IS EARLIER IS TO BE CONSIDERED FOR THAT.

HERE SHE HAS CREDITED BILL EARLIER THAN MAKING PAYMENT, SO THE DATE OF CREDIT & AMOUNT OF BILL SHALL BE CONSIDERED.

SHE NEED NOT DEDUCT TDS.

THANK YOU.

(Guest)

Originally posted by : Lalit Dhabria
	DEAR ALL, THE THRESHOLD LIMIT OF RS. 30,000/- APPLIES ONLY WHEN A SINGLE CREDIT/PAYMENT IS MORE THAT 30,000/- & BILL CREDITED OR PAYMENT MADE WHICHEVER IS EARLIER IS TO BE CONSIDERED FOR THAT. HERE SHE HAS CREDITED BILL EARLIER THAN MAKING PAYMENT, SO THE DATE OF CREDIT & AMOUNT OF BILL SHALL BE CONSIDERED. SHE NEED NOT DEDUCT TDS. THANK YOU.