Tds on advertisement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 We have not deducted a TDS on Advertisement for the following Pymts. made, Rs.3,621/-, Rs.9,504/ and 11,518/- belong to one party and the last payment made on 07-02-2014, (total amounting to Rs.24,643/-), but chq. has not been issued for the last payment. The advertiser is a firm. whether the TDS has to be deducted on the whole Amt. of Rs.24,643/- as it is not crossing the permissible limit. Pls. reply thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 February 2014 Since the total amount does not exceed Rs. 75,000 and any invoice does not exceed Rs. 30,000 TDS is NOT required to be deducted.

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 Thanks Siddhartha for the Reply, but what if in the next month, the bill is raised for Rs.12,000/-, then also the TDS has not to be deducted in the same case. Can u pls. provide any of the Act in the above case. Thanks.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 February 2014 Section 194C deals with TDS on contractors.

TDS u/s 194C is applicable if one of the following conditions is satisfied:

1) Individual invoice exceeds Rs. 30,000
2) Aggregate of invoices exceeds Rs. 75,000

In your case ALL invoices are less than Rs. 30,000/-

So TDS will be applicable only when the aggregate of invoices exceeds Rs. 75,000

If next month a bill of Rs. 12,000 is received, the aggregate is still less than Rs 75,000 and accordingly TDS will not be applicable.