24 December 2013
PL. ANSWER FOLLOWING WITH REFERENCE TO SEC 194C
whether tds to be deducted u/s 194 C in following cases:
Q.1: If two bills of Rs. 20000 + 20000 were credited and paid by two cheques of Rs. 20000/- each
Q. 2: If two bills of Rs. 20000 + 20000 were credited, however paid through single cheque of Rs. 40000/- during the year.
Q. 3: If two bills of Rs. 20000 + 20000 were credited previous year, however paid through single cheque of Rs. 40000/- in current year.
Q.4 : If party has op. bal. of Rs. 80000/ cr. (tds already deducted in prev. year) and paid entire amount o/s through 4 chequs of Rs. 20000/- each in current year, and only one bill is credited during current financial year which is below Rs. 30000/-
Q.5 : If party has op. bal. of Rs. 60000/ cr. (tds not deducted in prev. year) and paid entire amount o/s through 3 chequs of Rs. 20000/- each in current year, and only one bill is credited during current financial year which is of Rs. 26000/-
24 December 2013
TDS is required to be deducted at the time of credit or payment whichever is earlier. Accordingly, we have to see the event which occurs first.
1. Since the individual bill is less than Rs. 30,000 and the aggregate is less than Rs. 75,000 TDS is NOT required to be deducted.
2. Same as 1 above.
3. TDS not required to be deducted for above reasons.
4. Since TDS has already been deducted in the previous year, TDS not required to be deducted at the time of payment. In the current year since the bill amount is less than Rs. 30,000 TDS is not required to be deducted.
24 December 2013
1. Not applicable. ( all the payments below 30k. annual less than 75k)
2. Applicable. (single payment in excess of 30K)
3. Applicable (single payment in excess of 30K)
4. Not applicable (as TDS deducted in earlier year)
5. Applicable (as payments made exceed Rs 75000)
Please note that invoice value is no concern here. Only the payment or likely payment is to be considered. In Point 4 it has advised that TDS wont be applicable as it has been already covered in earlier year
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