The estimated payment to a Contractor for the year is not going to exceed Rs. 75000/-. Hence no TDS is deducted in the first 2 quarters where the payment has actually not exceeded the threshold limit. But in the 3rd quarter the total payment to the contractor exceeds Rs. 75000/-. How would the TDS liability be determined?
E.g. The following bills have been raised by the contractor:
- Whether the TDS has to be deducted on bill to bill basis and interest on the same needs to be calculated from the due date for each month? OR
- Whether the TDS on the entire amount can be deducted in Nov without any interest payment if the same is paid by 7th of Dec?