TDS ON CONTRACTOR PAYMENT UNDER 194c

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435 Points Posted on 11 May 2021
If rs 5000 paid to a contractor having already applicable tds on earlier payments in financial year... then tds is deducted only 5000 or not.... any if I already paid to him rs 70000 in financial year,then what is the minimum amount on which I have to deduct tds on minimum payment....for example 2000, 3000, 1000, 1500 whta is the limit
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On 11 May 2021 at 11:07 Report
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This discussion clarifies the rules for deducting Tax Deducted at Source (TDS) on contractor payments under Section 194C of the Income Tax Act. It explains that TDS should be deducted on the cumulative payments made to a contractor within a financial year once a certain threshold is crossed, not just on individual payments. The threshold applies to the total value of payments, ensuring compliance with tax regulations.

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Chartered Accountant
24588 Points Posted on 11 May 2021
In case of 194 c if payment is 30000 rupees then TDS should be deducted only to a single contactor and if it is consolidated then TDS will be deducted on 1 lakh rupees
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On 11 May 2021 at 11:22
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CMA
13117 Points Posted on 11 May 2021

Yes, agreed. Deduct TDS on total value (including previous transactions) as and when the threshold limit crosses.

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On 11 May 2021 at 17:07

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