194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2012 suppose we have appointed 4 different contractor payment of each bill is less than rs.30000/- and annual aggregate amount paid to each contractor is less than rs.75000/- do i need to deduct tds??

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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19 September 2012 Yes required to deduct TDS.

As per section 194C tds has to be deduct on contract payment to a person if the any of the following conditions satisfied.

1) If the total payable or paid amount exceeds Rs.75000 during the financial year.
2) Event though total payable or paid amount in a financial year doesn't exceeds Rs.75000 but a single payment or payable exceeds Rs.30000 TDS has to be deduct.

The above limit prescribed for each contractor individually.

For your case comes under the first point above so has to deduct TDS u/s194C.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2012 for the 1st point payment made for each bill is less than 30000

eg:

contractor a 10000+25000+15000+10000 = 60000/-
contractor b 25000+25000+10000 = 60000/-
contractor c 10000+10000+20000+10000 = 50000/-
contractor d 20000+15000+15000+10000 = 60000/-

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Guest

Guest (Expert)

19 September 2012 Not required in the above case because the limit of 30000/- and 75000/- is for each contractor. Also the applicability will depend on the amount paid/payable to each contractor.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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19 September 2012 Then not required to deduct TDS. In your first question you said "annual aggregate amount to each contractor is less than Rs.75000" but i wrongly by overlook understands it as above Rs.75000 so such way i told to TDS applicable.
I am sorry to my mistake.
Lets now for your case TDS not applicable.

OM SAI SRI SAI JAI JAI SAI