Obligation of tds deduction u/s. 194c -

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2012 I have to make 02 nos payment on different dates to a contractor who provided catering services and raised separate bill for the same on different dates. The first payment was Rs. 10000/- and payment of second bill for Rs. 35000/- I have deducted TDS on payment of Rs. 35000/- but not deducted TDS on Rs. 10000/- keeping in view of the provision U/s. 194C. but taxation authority has raised notice why the TDS has not been deducted on Rs. 10000/-, as the second payment has exceeded Rs. 30000/- Hence, the TDS is applicable all the payment whether the aggregate payment for the year is exceeded by Rs. 75000/- or not.

Kindly give your opinion with any case laws (if any available on these issues) so that Taxation authority may be challenged. Or applicable TDS may be deposited with authority.

Guest

Guest (Expert)

03 February 2012 It is well known fact that TDS will apply of payments made during the whole year if any single payment exceeds Rs 30000 although the cumulative amount during the year does not exceeds Rs 75000

There is lapse on part of the assessee