TDS under 194C on single payment exceeding Rs. 30000

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Whether TDS is required to be deducted if payment to contractor exceeds Rs. 30000 including gst. Eg. Contractual paymebnt 29000 + Gst 5220=34,220.
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Under what circumstances TDS u/s 194C is not deductible?

No tax is required to be deducted in the following cases:

a. Where the sum paid or credited in pursuance of any contract does not exceed Rs. 30,000, or b. where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year does not exceed Rs. 1,00,000 the person responsible for paying such sums will not deduct TDS under this section c. Individual or HUF not to deduct tax if the payment or amount credited to the contractor is for personal use

i. No individual or HUF shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for the personal purpose of such individual or any member of HUF

ii. No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN, to the person paying or crediting such amount

Originally posted by : Aamir
Whether TDS is required to be deducted if payment to contractor exceeds Rs. 30000 including gst. Eg. Contractual paymebnt 29000 + Gst 5220=34,220.


No TDS to be deducted..

As the payment or amount credited  exceeds Rs.30000, the payer is under  an obligation to deduct tax at source but  only on Rs.29000 (excluding GST as per CBDT circular).

What if a bill raised is of rs.30000 but the aggregate amount during the year doesnt exceeds rs.100000. Are we still liable to withhold tax us 194c?


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