Tds deduction

TDS 204 views 4 replies

Although there was no liability to deduct tds under section 194C, as the limit of Rs. 30000 and Rs. 75000 has not crossed, yet the assessee, being a company, has deducted TDS on first payment of Rs.15000/- towards an advertisement expense @ 2% to a partnership firm.

Further a subsequent payment of Rs. 20000/- within the same financial year was made to the same party for advertisement expense.

Note: During the Financial year only these 2 payments have been made to the particular party.

Que: Is it necessary to deduct TDS on the subsequent payment of Rs. 20000/- made?

 

Replies (4)
No, since limits have not been crossed, there is no liability to deduct tax.

Thanks Sir, for your valuable reply.

But I still have a confusion that, since I have deducted TDS on the first Payment made to the advertising agency,

whether I have the liability to deduct TDS on the second payment made.

 

just because you deducted in the first payment, you need not deduct on subsequent payments unless the limits have been crossed.

Thanks Sir!!!

Now I got it ..


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