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Tds on contract

Rejiesh (M.Com) (24 Points)

29 November 2019

I would like to know if a contract bill of 40,000 was settled by payment of 30,000 and 10,000.

So is tds applicable u/s. 194C?

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 29 November 2019

Yes... TDS applicable if A "SINGLE BILL" exceeding above 30k...

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Kapadia Pravin (17264 Points)
Replied 29 November 2019

Yes TDS under 194C is applicable as bill amount exceeded the limit 30000/- ( @ 2% if paying to Non-individual and 1% if paying to individual)

However if you are an individual proprietory concern ( not under 44AB tax audit) , then there is no requirement to deduct TDS .

Rejiesh (M.Com) (24 Points)
Replied 30 November 2019

Thank you for your guidance ...

What would be the tds status in the case of multiple bills exceeding 30000 but less than 100000 ?

Please help

Kapadia Pravin (17264 Points)
Replied 30 November 2019

TDS becomes applicable on whole amount once it crosses the aggregate 1 lakh limit which is per person / party

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 30 November 2019

(sorry for attending this query after some attention. bcoz, last few days I'm not like that for... .... )

@ Mr Rajiesh.,

What would be the tds status in the case of multiple bills exceeding 30000 but less than 100000 ?

- Tds not applicable if limit not exceeding 1 laksh...

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