Dear members,
I have an query regarding TDs US 194C
Amount credited in accounts 32,000 consist of 10-15 bills. single bill amount not exceed 30,000 but Single payment made to party of amount 32,000 which exceeds 30,000 limit. First credited then payment is made...does TDS liability arise ???? please guide
When single payment exceeds Rs.30000, TDS has to be deducted, irrespective of whether the payment is for multiple bills or single bill.
Section 194C refers to amount of payment.
hi...
Yes it will attract because the section says if single payment exceeds 30000 or the payment in the year exceeds 75000 TDS should be made.....
Also the deduction will on the date of credit of payment whichever is earlier....
If Tds deducted...when will liability arise...as per law credit or payment whichever is eearlier..credit is earlier and at the time of credit no liability arose....if advance made of more than 30,000 then liability arise...as per my view...correct me plz, if I am wrong....
.. still confussion ...
no it will not attract coz as per law whichever is ealier but in case first bill is entred and no one bill is exceed to 30k nor total bill exceed to 75 k ..
almost clear...but thing is how do I conveyance my CA
hmmm .. its difficult ... if he said tds should be deducted thn u have to :(
Since Single Bill does not exceed Rs.30000/- so TDS need not be deducted. And all the Bills together the amount is less than RS.75000/- so TDS will not be deducted.
The Payment of Rs.32000/- has nothing to attract TDS because the overall ceiling of Rs.75000/- has not exceeded
There is no need to deduct the TDS,until cross the limit of Rs. 75000/- during the whole FYear or Single bill > Rs. 30000/- U/S 194C
Hi Namrata
Income tax act said TDS is applicable on amount of credit and payment which is earlier and maximum limit u/s sec 194 is Rs. 75000 p.a and single bill value is to be Rs. 30000 (prior 30-jun-2010 it was Rs. 20000/-) u can see the para no 159.3 page no A-353 of ready reckoner.
While deducting TDS you need check the below points
1) Date of Payment or Credit which ever is earlier
2) Threshold limit --> Single Transaction Rs.30000/- or Aggregate during FY. Rs.75000/-
In your case Bills Credited first in the books with bill amoounts less than Rs.30000/-
Therefore no need to deduct TDS till the aggregate amount crosses Rs.75000/- or if any single bill comes for morethan or equal to Rs.30000/-.
But if you think that future transactions during the FY may cross the Rs.75000/- value then better doing TDS from now itself.
TDS MUST BE DEDUCTED AS PER SEC. OF INCOME TAX
CAclubindia
