Sir/Madam,
I have to made a payment of Rs 46000/- for a 3 different invoice of same vendor.All invoices are below 30,000. Whether I have to deduct TDS u/s 194C
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TDS Contract / 194C
Replies (8)
Quick Summary
What you received through the invoice from vendor...?? Service or Goods...?
If service and its should be classified 194C then Yes TDS will be deduct the payment...
If service and its should be classified 194C then Yes TDS will be deduct the payment...
What is the limit to deduct TDS u/s 194C?
The following is the limit applicable under section 194C to deduct TDS:
- The amount paid or credit is a single contract that exceeds Rs 30,000
- The amount paid or credit during the financial year altogether exceeds Rs 1,00,000.
In case if it is towards provision of service and as you said each invoice value didn't exceed Rs.30,000/- but you are making the payment for all the 3 invoices as a single payment i.e., Rs.46,000/- then you must deduct TDS on the base value of each invoice in applicable rate.
Si far paid Rs.46000 for three different Invoices there is not exceeding the threshold limit but with in the financial year if exceeding the payment of Rs.1 lakhs to this vendor then you can deduct TDS on payment
Time limit to deduct tds must be essential.
By default you can start deducting tds 1% or 2% due avoid practical issues.
Once it cross 1Lac , you have to deduct entire tax in one invoice which can create practical issues.
Once it cross 1Lac , you have to deduct entire tax in one invoice which can create practical issues.
@ Bala Chandran,
The payment is exceeds above 30k.
Check out the provisions...
The payment is exceeds above 30k.
Check out the provisions...
Threshold limit is always not the criteria.
30,000/- and 100,000/- limits are mandatory.
But one can voluntarily follow and deduct tax without considering the limits
But one can voluntarily follow and deduct tax without considering the limits
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