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Tds deduct u/s 194c

Shreyansh (Student CA Final ) (53 Points)

04 August 2016

I received one job contract bill rs 60,000 and deduct tds on it, than i received another bill from same contractor rs 3000 than tds deduct on it or not. It is sure that after it i will not receive any bill in financial year.

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2 Replies

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 04 August 2016

As per section 194C, tds is deductible if individual payment exceeds Rs.30K or aggregate of payments made in a F.Y. exceeds Rs.1Lac. You were correct in deducting tds on RS.60K and as per your explanation if it is anticipated that no further job contract will be received in f.y. then no need to deduct tds on rs.3k

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saurabh kumar (Tax Consultant) (348 Points)
Replied 04 August 2016

No need to deduct tax on the bill of Rs. 3000 because neither it exceeds Rs. 30000 nor the total bill amount about to cross the yearly limit of Rs. 75000.Apart from one can not deduct tax from payment to contractor so long as he does not required to get his accounts audited.The yearly limit of exemption has been increased from F.Y. 2016-17 up to Rs.100000.