Section 194c applicability

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Guest

Guest (Querist)

04 December 2012 Sir,

I want to know, whether engaging a particular travel agency for travelling of directors of a private limited company without entering into contract with him is liable for deduction of tax at source.

Thanks.

CA Parul Saxena

CA Parul Saxena (Expert)
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04 December 2012 For the purpose of TDS u/s 194C agreement need not be in writing only it can be oral also...so TDS is applicable if Single payment of Bill exceeds Rs. 30000/- or aggregate payment during the year exceeds Rs.75000/-

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Guest

Guest (Querist)

04 December 2012 Mam,
Thanks for ur reply. But if we are hiring taxi not on regular basis and amount exceeds Rs. 75000/- in a year then what is the applicability.

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CA Parul Saxena

CA Parul Saxena (Expert)
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04 December 2012 If you expect that amount would cross the limit of Rs.75000/- then it is better to deduct the TDS rather than not to deduct and face the penalties and interest...

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