18 May 2009
Dear all, Payment made to single party but 2 different contracts(for one 35,000 (per year) & for other one 45,000) whether TDS to be deducted or not u/s.194C? (separate contracts does not exceeds the aggregate of Rs.50,000 but combined exceeds the same)
1. Value of contract exceeds Rs. 20,000. This celling is not to be computed financial year wise. Since value of indivisual contract exceeds Rs. 20000/-, TDS attracted.
2. If the value of contract indivisually does not exceed Rs. 20000/-, but, aggregate amount per contractee exceeds Rs. 50,000 per year, TDS is attracted. Since the aggregate amount of both the contract exceed Rs. 50000/- you are liable to deduct tax.
CAclubindia
