Tds u/s 194c of it act, 1961

U must have to deduct tds on the date 19/10/2015. but u have to deduct TDS on Full Amount thats

20000 @ 10%=2000

25000 @ 10%=2500

30000 @ 10%=3000

28000 @ 10%=2800

So from the last payment which is u paid thats Rs. 28000. from this u have to deduct TDS. Ths Amount Will be

=2000+2500+3000+2800

=10,300

So ur net Payment will be Rs. 17,700 (28000-10300)

From now onwards u have to deduct tds for the current period and further period also.

Hope u get full idea.

THIS WILL APPLY TO 194I AND 194J OF it ACT

Yes u must have to Follow for the all TDS liability which Occurs.

I also want to ask that octroi charges paid is cover u/s 194C for TDS deduction

No it doesnot cover under TDS.

1. First of all, rate of TDS u/s 194C is either 1% (in case the deductee is individual/HUF) or 2% (for others)
2. Threshold limit of Rs.75,000 exceeds on 1/1/16 and hence you need to deduct tax at source on the entire payment/credit (of Rs.1,03,000/-) Rs.on 1/1/16 @ 1% or 2% as applicable
3. Further, you will have to pay interest @ 1.5% p m (if TDS is not paid before 7/2/16)

Octroi is a statutory liability paid to local authorities. It is not an expense and hence no TDS is applicable on payment of octroi

thanks

It was really easy explanation..by.. Poornima.....Thanks..

if we contract with particular person who supply tea, coffee, snakc etc to office and bill amount goes to 100000 during the year then such amount liable to deduct TDS u/s  194C of IT act.

if above payment liable to TDS then- in above sentence "contract" word removed then also it is liable u/s 194C.