Tds on contractor invoices

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.

 

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

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.