Tds under section 194c

TDS u/s 194C is requried to be made as per following:

 if single payment  towards a bill exceeds Rs 30K  or

if aggregrate payments against towards bills exceeds Rs. 75000.

In your case the single bill does not exceeds Rs 30K, so TDS need not be made now.  However when the aggregrate bills exceeds 75K during the F.Y. then TDS needs to made on teh whole of teh bills issued till that date.

Originally posted by : CA Parul Saxena
	company A has a contract with Company B. Company B provides bill as follows:- 15.04.12...................................15000 15.05.12...................................16000 Total...........................................31000 aggregate limit has not crossed 75000/- and single payment limit of 30000 has not crossed. But in total the aggregate is 31000 which is over and aboe 30000 now whether to deduct TDS?If yes then why?

In the given case company b is not liable to deduct TDS

as tax will be required to be deducted at source where the amount credited or paid to a contractor/ sub-contactir exceeds rs. 30000 in a SINGLE PAYMENT or 75000 in the aggregate during a financial year...

further Company B issues 2 more bills as follows:-

15.06.2012............25000

15.07.2012...........25000

Total of all the bills=15000+16000+25000+25000=81000

Upto 15.06.2012 no TDS is being levied as the total i.e.56000 is less than 75000 and the company while making payment of last bill of Rs.25000 raised on 15.07.2012 deducted TDS of Rs.8100.

Now my question is while filing TDS return of the 2nd quarter how the entry to be made in software....in the gross amount column what to write? If we enter 81000 then what date to be entered and if we write 25000 then it will not accept tds of Rs.8100