for current financial year 2010-11 i am making a payment of Rs. 8000 to a contractor and i hope that total payment for year will exceed the exemption limit.
I want to know whether i have to deduct TDS on this amount 8000 or i have to deduct TDS on amount when it cross the exemption limit.
07 May 2010
If you are sure the amount will increase the thershold limit, better starts deduct now itself otherwise the tds burden will high for the contractor later
07 May 2010
YOU CAN DEDUCT TDS ON THIS AMOUND OF RS 8000/-. IT IS NOT MANDATORY TO DEDUCT TDS ON CROSSING THRESHOLD LIMIT. YOU CAN ALSO DEDUCT TDS AFTER CROSSING THE THRESHOLD LIMIT.
17 May 2010
The application of provision of section 194C are triggered at the point when it is first noticed that the payment to a particular contractor will or likely to be more then the minimum thresh hold limit for withholding the tax i.e. 75K in this case. So you need to withhold tax from the first payment itself in your case.
CAclubindia
