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TDS for a payment to a professional

256 views 3 replies

I have been taking the services of a professional for 5 months. We had agreed to a payment of Rs 10,000 per month. So, first 3 months I didn't deduct any TDS as the total amount paid was less than Rs 30,000 but from the 4th month onwards, I started paying Rs 9,000 only deducting 10% as TDS.

So in the 4th and 5th months, I deducted TDS. Is it the right thing I did?

Or should I have deducted tax for all the 5 months?

Replies (3)
In the 4th installment deduct for the first three as well
Sec 194 J says booking of bills or payment of bills whichever is earlier.
It's advisable to deduct tds on every payment. In case the nature of contract is one time and less than threshold limit, you may not deduct tds.

Thank you so much, understood


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