tds-contractor

IN CASE A YOUR TDS WILL BE DEDUCTED ONLY ON RS. 20000 AND IN CASE B IT WILL BE ON ALL THE PAYMENTS SINCE IT EXCEEDS RS. 50000.

With respect to CASE A no TDS will be required to be deducted as the wordings of sec 194 C are "sum exceeding Rs.20,000/-".

In CASE B, TDS will be required to be deducted on all the earlier payments once the threshold limit is exceeded. No interest will be levied as the deductor had no idea that the thresold limit would exceed.

in case A,no TDS is required to be deducted as the payment made is not exceeding the limit of Rs20000 for single transaction or Rs50000 for aggregate during 1 financial year.

However, in case B, TDS is required to be deducted on all payments till the date ,ie on 31/3/2008 ,of exceeding the threshold limit of Rs 50000 during the year,No intt is to be charged on such earlier payments.