Tds

In our company we regularly book travelling tickets from a transport company.over all bill till now is 95,000 weather tds is applicable for that travelling company? ??
Replies (2)
Yes, TDS is applicable @ 2%
Yes As per section 194C, payment exceeding >30k/invoice or 75k/annum made to contractor/sub contractor for providing any service attract TDS deduction by the payer/deductor @ 1% in case of payee is individual, HUF, Proprietor else 2% in case of others (i.e., company, firm etc). In your case, tds @ 2% will be deducted at d time of payment or credit to transport company, whichever is earlier since it has already exceed ed the limit of 75k/annum. Ideally, u should deduct tds on all payments after 75k threshold.

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