Tds on contractor invoices

199 views 3 replies

dalip

branch manager

38 Points Joined July 2014

Dear Sir If a contractor issue me three invoice 20000/- each invoice in different dated, total amount of three invoice is 60000/- but payment of contractor paid by one Cheque & one date, please tell me that i will deduct TDS or not

Replies (3)

CA Tanvi Sheth

Consultant

232 Points Joined March 2016

If the transactions are different and payment is made later on after accounting the invoices then no TDS but if total payment is in advance and then accounting is done, you need to deduct TDS.

rama krishnan

12244 Points Joined May 2017

if a payment made to contractor in a day exceeds 30000 rs or aggregate of amount exceeds 1 lac rs then you have to deduct 1% tds if the contractor is individual or 2% other case

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

TDs U/s 194C deducted on Contract if annual payment exceeds Rs.1,00,000/- & amount of single payment exceeds Rs. 30,000/- thrn TDS is required to deducted on date of payment or issue of cheque whichever is earlier.

Rate of TDS is 1% for Individual or HUF & 2% for others. However Individual or HUF not required to deduct TDS if they are not liable to audited i.e. gross turnover doesn't exceeds Rs.2 crore & gross receipts doesn,t exceeds Rs. 50,00,000/- as the case may be.