20 February 2010
I agree with Expert Sanjeev, As per your querry it is on Rs.36000. However if both the invoice are issued against a single contract then it will be on 43000. Further it is likely that in the year labour charges of the same contractor is going to cross 50,000 then also it is advisable to deduct TDS on any amount without waiting for limit cross.
This issue has aroused because both the bills are from the same party.
Both are invoice are issued under two different contracts. The total payments during the year are not going to exceed Rs.50,000.
Since one single payment exceeds Rs.20000, TDS is deducted on second bill. But total payment doesnot exceed Rs.50,000, then why TDS should be deducted on the total amount of Rs. 43000/-
CAclubindia
