Tds cut off amount doubt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2012 Request you to clarify on TDS :-

Want to Know as how TDS has to be Deducted for 194H.(Cut off Amt Rs 5000/-)

I Have 3 transaction in a Year :

1st ----For Rs1300/-
2nd----For Rs1100/-
3rd---For Rs 2800/-

I understand that we need to deduct 10% on 2800/- as for this transaction only as it exceeds 5000 at this point.

Confirm me if i am correct.

Mohit Naithani

Mohit Naithani (Expert)
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31 July 2012 TDS is to be deduct @ 10 on whole amount paid / payable to vendor (1300 + 1100 + 2800)

Deduct Rs 520 from his last invoice or Rs 2800/-

In short

Total amount paid / payable - 5200
TDS @10% u/s 194H 520

But now you have a bill of amount 2800. hence you have to deduct Rs 520 from Rs 2800.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 July 2012 TDS is required to be deducted on the total amount if the amount during the year exceeds the cut-off limit.

In this case, at the time of booking Rs. 2,800, the total amount exceeds Rs. 5,000.

So, TDS will be deducted on Rs. 5,200.

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Deepanshu Agg.

Deepanshu Agg. (Expert)
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22 September 2012 Agreed with Mohit And siddharth