Disallowance as per sec. 40(a)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2010 If a paymenyt of rs. 30000/- is paid in aggragate to Mr. X for Printing and an amount of Rs. 40000/- is paid to him for Advertising contract, weather the total amount paid to Mr. X is to be disallowed u/s 40(a).
If answer is yes or no which part specifically say so?

CA Shishir

CA Shishir (Expert)
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03 February 2010 Any expenditure exceeding Rs. 20,000/- (for a single bill) or aggregate exceeding Rs. 50,000/- (for the entire year) provided by the same person, TDS has to be deducted. Here in the above case, the aggregate for the year is Rs. 70,000/- and hence TDS has to be deducted on the entire Rs. 70,000/- even though two different services have been provided.
The deduction is person-wise and not expenditure-wise