Case:
Payment made to Contractors and subcontractors.
Suppose the billing is as follows
1 5-4-2012 rs 7500
2 25-4-2012 12500
3 5-5-2012 16500
4 6-8-2012 35000
Now i have to deduct tds only on last bill 35000 or all the bills.
Suppose there are no furthure transaction.
Fast reply
Thanks
You have to deduct TDS on all the bils.
You have to deduct on all previous bills because 1 of your payments has exceeded Rs. 30,000/-, even though the total does not exceed Rs. 75,000/-.
Tds shud be made on the last bill only of Rs35ooo, as the aggregrate of the paymetns made till date does not exceeds Rs78000. If there are any more bills issued further & the aggregrate amounts exceeds 78000Rs, then TDS will be required to made on the whole payment, other than the payment of Rs 35,000.
Sorry Giridhar sir but TDS have to be deducted on all bills
But the sub-section 5 talks only of any sum paid does not exceeds 30000. And the proviso talks about the aggregrate of the sums does not exceeds 75000.
so in this case only one sum is exceeding 30000 & the aggretrate does not exceeds 75ooo, so I think TDS shud be made only on 35000 & not the whole amount.
However if the aggregrate exceeds 78000 then TDS needs to be made on the whole amounts paid/credited.
Dear sir
TDS RATE ON OFFICE RENT FOR 2011-12 2012 -13
TDS Deducted on Whole amount .I totally agree
MY FRIENDS...
MAXI PERSON SAID THAT TDS WILL BE DEDUCTED ON ALL BILL.WHY ON WHAT BASIS?????
PRINCIPLE FOR DEDUCTION TDS U/S 194C IS THAT IF SINGLE BILL IS RS 30000 OR EXCEED.
OR ANNUALLY BILL IS Rs 75000 or EXCEED.
AS PER YOUR QUES YOU DOES NOT CROSS Rs 75000.
ONE BILL IS RS 35000 SO THAT TDS IS TO BE DEDUCTED ONLY ON ONE BILL NOT ALL BILLS.
Sum of all the bills comes to Rs 71500 which is below Rs 75000 and only one bill of these exceeds rs 30000, Therefore TDS has to be deducted on this bill only.
@ CA Praveen Singh Sir
Will your answer be same if i change the sequence of transaction like.
1)5-4-2012 rs 35000
2) 25-4-2012 12500
3) 5-5-2012 16500
4) 6-8-2012 7500
No furtuher transaction hen also TDS deduction only on 1st bil..??
TDS on Contractor is deductible only if -
i. one time payment exceeds Rs. 30,000/-; or
ii. the total payment/credit made during the year exceeds Rs. 75,000/-.
In your case, total does not exceed Rs. 75,000/- hence TDS is payable only on bill exceeding Rs. 30,000/-.
TDS to be deducted on the total amount and not on the last bill.
CAclubindia
