TDS on contractr

One of the conditions for deduction u/s 194c (TDS on contractor) is that any single payment made during the year is exeeding Rs. 20,000/- for A.Y 2010-11.

Is it ncessary to attract this section that such single payment of exeeding 20,000/- is only in respact of bill exeeding 20,000/-??

If payment is exeeding 20000/- for two bills & none of the bill is exeeding 20000/- then this section is applicable ??

Replies (1)

No it wont be applicable - the criteria is value of single bill

If the amount of single bil exceeds Rs 20,000 then TDS is applicable - even if payment is made in instalments below Rs 20,000

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