Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 Dear Sir/Madam,

I am having one doubt in TDS on Handling Charges.

We are supposed to deduct TDS on Handling charges @ rate of 2% or 1% under 194C depend up on the status.

My Query is as per 194C cutoff is 30,000 as per the TDS Chart for FY 13-14. & they they given the note as Yearly limit u/s 94C where the aggregate of the amounts paid/credited or likely to be paid/credited to Contractors or Subcontractors exceeds Rs.75,000/-during the financial year TDS has to be deducted u/s 194C I cant able to understand this. Can any explain this with an example? (In my case Handling charges went to Rs.78,000/- I want to deduct TDS for 78,000-70,000 = 8,000 or I want to Deducted TDS for 78,000 itself) If I deducted now means any Interest will come. Pls help me

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 November 2013 As and when no TDS is deducted on such transactions, the amount paid has to be shown in the e-tds return by showing 0 TDS.
You have to specify that the said amount paid/credited is below threshold limit.
.
As you have not shown the same, now you may
have to show the amount Paid as Rs. 78000 and have to deduct TDS on Rs. 78000.
.
Since ,earlier the amount was below threshold limit, interest is not applicable.
.