Hi Friends! Let me know, what is the minimum amount of a single bill (Contract- 194C) effects TDS? Is it Rs.20,000/- or Rs.50,000/-. If there is only 20,000/- bill in one FY. Is is liable to deduct tds?
Hi Friends! Let me know, what is the minimum amount of a single bill (Contract- 194C) effects TDS? Is it Rs.20,000/- or Rs.50,000/-. If there is only 20,000/- bill in one FY. Is is liable to deduct tds?
Mr. Nagesh,
TDS attract in the folowing cases:-
When the payment to any person with whom we have contract exceed Rs.20000 at one time. or 50000 during the financial year.
Both the condition must be cumulatively satisfied.
In the asbove cases, No TDS will be deducted
NO TDS Shall be deducted in the above case....
In a layman's language , if a single contract does not exceed Rs. 20000 there is no need to deduct tax at source. However, if the aggregate of all the contracts with a single party exceed Rs. 50000 in a year , Tax has to be deducted on the entire amount if not previouly deducted once the aggregate contracts exceeded the threshold limit of Rs. 50000 with a single party.
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