Tds on labour charges
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)
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.
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.
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.
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
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
Recent Topics :
- Bill-to-ship-to material at client site, project c
- Export previously now to be considered domestic sa
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
Related Topics :
CAclubindia
