TDS query u/s. 194C

CA Vitrag S Modi (Chartered Accountant) (186 Points)

19 June 2010  

I have entered with one party for service and maintenance contract for the 1st , 2nd, 3rd and 4th quarter separately.

I have received all the 4 bills separately for each quarter.

I have made payment separately for each quarter.

My quarterly bill amount is less that Rs. 20,000/- and total of 4 bills is also less than Rs. 50000/- but if that party would have entered with me for an Annual maintenance contract then the amount of bill would have exceeded the limit of Rs. 20000/- and I would have been liable for deducting TDS.

Actually I have been entering in contract with him for last 5 years.

Now i want to ask whether my all the 4 bills can be deemed to be a single contract or all of them will be treated as diff. contract.


If all of them can be treated as diff. contract then why should we not take our AMC bill monthly/Quarterly to avoid TDS liability?

Which is the date from which the limit of Rs.20000/- and Rs.50000/- is going to be Rs.30000/- and Rs.75000/- respectively?