Tds on labour charges

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vijay

article assistant

116 Points Joined December 2015

payament of rs.500000 made for supply of labour. Bill of rs.500000 has been bifurcated into 5 bills of rs.10000 each..Is tds applicable, though the each bill of rs.10000 not exceeds limit of rs.30000

Replies (6)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

if paid to single contractor / person / entity - YES

if paid to different contractor / person / entity - NO

Assuming the amount paid as 50k (not 5 lacs), TDS not applicable if 5 different bills (even from the same service provider) for 10k are received since the aggregate does not exceed 75k and single bill value does not exceed 30k. Hence provisions of 194C not applicable in this case.

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Agree with Poornima
If the payment that is being made to the contractor does not exceed Rs. 30,000, No TDS on payment to contractor is required to be deducted. However, if the total of all such payments made or to be made during a financial year exceeds Rs. 75,000; TDS shall be deducted under Section 194C.

Niraj Bista

A/C

70 Points Joined September 2015

Of course TDs should be deducted at the point of time when the limited amount of 75000 as per 194C exceeds to each person. In your case amount is 100000 so u need to deduct TDs, even though bills are bifurcated into 5 pieces, otherwise expense will be disallowed.

bhuvanesh mohan

22 Points Joined December 2008

Assuming you paid Rs 50000.00 divided in five bills of Rs.10000.00 each then you are not liable to deduct the tax as single limit is Rs.30000.00 per bill and in total Rs. 75000.00

bhuvanesh mohan

22 Points Joined December 2008

Assuming you paid Rs 50000.00 divided in five bills of Rs.10000.00 each then you are not liable to deduct the tax as single limit is Rs.30000.00 per bill and in total Rs. 75000.00