Section 194 c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2013 One Bill exceeded Rs. 30,000/- Limit, therefore TDS is deducted. Now next bill is for 10,000/- in same year, will TDS be deducted on Rs. 10,000/- as well, though overall limit is below Rs. 75,000/- only.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

30 August 2013 No TDS not required to be deducted on Next Bill of Rs 10000/-. But if during the Financial Year Rs 75000/- limit is crossed then TDS will have to be deducted on all those bills on which TDS was not deducted.

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2013 Pls give me some basis of your reply as my auditor is saying that once TDS is applicable, then all the subsequent bills are liable for TDS deduction even if it does not cross Rs. 75000 threshold limit..

Upgrade to CAclubindia Pro. Subscribe Now!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

30 August 2013 TDS under section 194C is required to be deducted when Threshold limit is crossed. For bill over Rs 30000/- single bill limit is crossed and TDS is deducted but on Bill of Rs 10000/- single bill threshold limit is not crossed and also annual limit of RS 75000/- is not crossed and therefore TDS not required to be deducted. It is a simple interpretation.

I am keeping this query open for views of other experts.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

30 August 2013 1. Section 194C(5) provides that no deduction shall be made if the amount does not exceed Rs. 30,000/-

Proviso to Section 194C(5) provides that where the aggregate amount exceeds Rs. 75,000 then TDS will be deducted.

2. In this case, the payment of Rs. 10,000 is covered by Section 194C(5). Since the amount is less than Rs. 10,000 TDS is not required to be deducted.

Proviso to Section 194C(5) is NOT APPLICABLE since the total amount does not exceed Rs. 75,000

Summary: TDS is NOT to be deducted on invoice of Rs. 10,000