Tds on advertisement

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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)

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.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

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.

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