Answer To Query

This query is : Resolved

CA Nitin Wadhwani (Querist)
Follow

30 August 2008 author : Vivek
Posted On : 8/29/2008 3:32:22 PM
Hi,

Please tell me whether TDS needs to be deducted on bill recd for extension in domain name.

I recd a bill of Rs.5000 saying Renewal of _____.net for 1 years.

Answer: Yes.

But Only if Amt exceeds 20000/- (single payment or 50000/-(in a Year)

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
Follow

30 August 2008 Section 194C(3):

3) No deduction shall be made under sub-section (1) or sub-section (2) from—

[(i) the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor or sub-contractor, if such sum does not exceed twenty thousand rupees:

Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the person responsible for paying such sums referred to in sub-section (1) or, as the case may be, sub-section (2) shall be liable to deduct income-tax 20[under this section:]