TDS u/s 194 C, limits are 30000 for single and 75000 for aggregate. But what to do in following case:
1. Rs. 15000 paid on 30.6.14,
2. Rs. 19000 paid on 10.11.14
3. Rs, 34000 paid on 17.01.15.
And now no further payment to this party in this Financial Year.
How should I deduct tds, only on Rs. 34000? or on full amount Rs. 68000?
Pls. provide circular or case referance if available.
Dear Chirag
You can deducted TDS on full amount for safeside @ 01% or 02% @ or as aplicable.
No need for any circular or case law because section 194C(5) itself says that, TDS will not apply if single payment does not exceed Rs. 30,000 and the aggregate payment made during the year does not exceed Rs. 75,000.
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In your case, payment made on 17.01.2015 is exceeding Rs. 30,000 but the aggregate payment is within the prescribed limits.
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Hence, deduct TDS on Rs. 34,000/- only.
then what what percentage on 34000/-?
| Originally posted by : MayankChawla | ||
 |
But what happens when there is another payment of Rs. 20,000/- in Feb and aggregate payment exceeds Rs. 75,000/-, will we deduct TDS on all payments from the beginning or on the payment when it crosses the limit of Rs. 75,000/-.....?? |  |
In the above case,if the amounts are 35000, 75000, 30000/-.what will be happen?
| Originally posted by : MayankChawla | ||
|
But what happens when there is another payment of Rs. 20,000/- in Feb and aggregate payment exceeds Rs. 75,000/-, will we deduct TDS on all payments from the beginning or on the payment when it crosses the limit of Rs. 75,000/-.....?? | |
Once the payment exceeds Rs. 75,000, the entire amount paid/credited during the F.Y. will be liable to TDS (i.e. tax needs to be deducted from Re.1).
| Originally posted by : Chirag V Thakkar | ||
|
TDS u/s 194 C, limits are 30000 for single and 75000 for aggregate. But what to do in following case: 1. Rs. 15000 paid on 30.6.14, 2. Rs. 19000 paid on 10.11.14 3. Rs, 34000 paid on 17.01.15. And now no further payment to this party in this Financial Year. How should I deduct tds, only on Rs. 34000? or on full amount Rs. 68000? Pls. provide circular or case referance if available. |
|
totally agreed with Deepak Gupta,
you have to deduct TDS on 34000.00 only. But you have to keep in mind, the TDS liability is arised when party is credited or paid, whichever is earlier.
| Originally posted by : MayankChawla | ||
|
But what happens when there is another payment of Rs. 20,000/- in Feb and aggregate payment exceeds Rs. 75,000/-, will we deduct TDS on all payments from the beginning or on the payment when it crosses the limit of Rs. 75,000/-.....?? | |
whenever you cross the limit of 75000 then you have to deduct TDS on whole amount from starting in that financial year.
CAclubindia
