18 March 2011
TDS deduction is not required if the bill date is on or after 01.07.2010.
Limit of single bill u/s 194C w.e.f. 01.07.2010 is Rs 30000/- and annual payment is Rs 75000/-. As single bill is below 300000/- and annual payment not crossing Rs 75000/- TDS not required to be deducted.
31 May 2011
The limit is for single transaction whether paid or credited (whichever is earlier). So if amount paid at a time is more than Rs 30000/- Before crediting the bill, though it relates to two bills below Rs 30000/- , TDS is required to be deducted.
If the amount paid/payable or credited/likely to be credited to the contractor/sub-contractor does not exceed Rs.30,000/- in a single instance (Applicable from 1.7.2010. previously it was Rs.20,000). However, the total of amounts paid or credited during the financial year should not exceed Rs.75,000/-. If the said amount exceeds Rs.75,000/-, then, the liability for payment arises on the whole of amount paid or credited and not on the amount in excess of Rs.75,000/-.( The limit of Rs.75,000 is applicable from 1.7.2010. Previously it was Rs.50,000)
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