27 March 2010
thanks do I ask why ? it seems I received bill of rs. 49000/- in feb and paid rs. 25000/- in march. there is no deduction. if I received rs.20000/- bill & paid rs. 20000/- so tds should be deducted...?
pls rectify me if i am wrong.
when you entered transaction in book of one party till end of the year and also paid randomly one by one. the amount of transaction does not go over rs. 50000/- and payment is also the same but not over rs. 50000/- so deduction is not applicable.
but if you take bill & paid the payment at a time or in current then tds deductible over rs. 20000/-
27 March 2010
TDS u/s 194 C : Deduction shall be made from the amount of any sum credited or paid to the account of the contractor if one of such sum exceed twenty thousand rupees. However, if the aggregate of the amounts of such sums credited or paid during the financial year exceeds fifty thousand rupees, them the person is responsible for deduction.
Even if u receive the one bill of Rs. 49,000/- but paid only Rs. 20,000, u are still responsible for deduction of TDS. as u r crediting your account with Rs. 49,000 at a single transaction.
Yes, if the aggregate of all the transaction is less then 50,000 , there would be no liability to deduct tax.
FOR AY 2010-11, the limit of 50,000 has been increased to 75,000/-
CAclubindia
