Tds 194c
This query is : Resolved
11 September 2014
Dear all,
1st payment 40,000...TDS is deducted @ 2%
2nd payment 20,000..
Whether TDS has to be deducted in case of 2nd payment.?
1st payment 40,000...TDS is deducted @ 2%
2nd payment 20,000..
Whether TDS has to be deducted in case of 2nd payment.?
11 September 2014
If you expect the total transaction during the FY to exceed Rs 75000 then you should deduct TDS otherwise not required.
11 September 2014
In addition to above reply,
Once the single payment exceeds 30000 you can start deduction of TDS
Infact it is mandatory to deduct TDS in such cases as per 194C
Once the single payment exceeds 30000 you can start deduction of TDS
Infact it is mandatory to deduct TDS in such cases as per 194C
11 September 2014
Dear Ganesh
Suppose 1st payment is Rs 40000/- and the 2nd payment which is also the last payment is Rs 20000/-.
TDS is not required to be deducted u/s 194C in the given case on 2nd payment since the Annual Limit of Rs 75000/- is not crossed as well as the single payment limit of Rs 30000/-.
Suppose 1st payment is Rs 40000/- and the 2nd payment which is also the last payment is Rs 20000/-.
TDS is not required to be deducted u/s 194C in the given case on 2nd payment since the Annual Limit of Rs 75000/- is not crossed as well as the single payment limit of Rs 30000/-.
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11 September 2014
Word used in the Act is " Single payment cross Rs. 30000 or aggregate payment in a f.Y. cross 75000"
So here case is single payment cross Rs. 30000 then provision apply to assessee.
There is the word "or" any one of the condition mentioned in the provision meet then require to deduct the tax for further payments too.
Please refer to Sec 194 C (5) .
Section specifically says that
"No deduction shll be made from the amount of any sum credited or paid or likely to be credited or paid to the account of or to the contractor , if such sum does not exceed Rs. 30000/-"
If you pay the single payment of Rs. 30000/- then provision start applicable . assessee require to deduct the tax on next payments.
So here case is single payment cross Rs. 30000 then provision apply to assessee.
There is the word "or" any one of the condition mentioned in the provision meet then require to deduct the tax for further payments too.
Please refer to Sec 194 C (5) .
Section specifically says that
"No deduction shll be made from the amount of any sum credited or paid or likely to be credited or paid to the account of or to the contractor , if such sum does not exceed Rs. 30000/-"
If you pay the single payment of Rs. 30000/- then provision start applicable . assessee require to deduct the tax on next payments.
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12 September 2014
I am with the understanding that once single payment exceeds 30,000,
it meets threshold limit and TDS continues to applicable
.
.
.
it meets threshold limit and TDS continues to applicable
.
.
.
12 September 2014
If your read the proviso 194c(5) its make you more clear.
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13 September 2014
View expressed by Gupta ji is correct. Deduct on Rs.40,000. Need not deduct on Rs.20,000.
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13 September 2014
Preferable to do TDS . When TDS done No need to prove genuineness of the transaction also.
Please read u/s 194c(5) along with 194c(1).
Please read u/s 194c(5) along with 194c(1).
13 September 2014
Sir its question of provision in law and not preference.
Criteria is simple. A transaction must cross either Rs 30000/- or Rs 75000/- anuual to attract section 194C.
Yes we always deduct TDS to be on safer side but going strictly by the provision the same is not required.
May be you are making a different interpretation.
194C(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed thirty thousand rupees: (In the given case on second payment not exceeded Rs 30000)
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds seventy-five thousand rupees (not applicable as annual total is below Rs 75000), the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
Hope its clear now.
Criteria is simple. A transaction must cross either Rs 30000/- or Rs 75000/- anuual to attract section 194C.
Yes we always deduct TDS to be on safer side but going strictly by the provision the same is not required.
May be you are making a different interpretation.
194C(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed thirty thousand rupees: (In the given case on second payment not exceeded Rs 30000)
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds seventy-five thousand rupees (not applicable as annual total is below Rs 75000), the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
Hope its clear now.
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13 September 2014
Thank you for sharing valuable information .
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