21 November 2010
What is meaning of limit in tds ?suppose? in case of U/s 194c contractor (ind/huf) there is limit of 30000 single contract i am not getting the concept of limit ? please help me .
21 November 2010
(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 48a[thirty] thousand rupees :
"credited or paid to the contractor" is not mean of single contract in my openion it should be concluded as "amount credited to single contractor" not single contract.
If the amount paid/payable or credited/likely to be credited to the contractor/sub-contractor does not exceed Rs.30,000/- in a ***single instance*** (Applicable from 1.7.2010. previously it was Rs.20,000).
However, the total of amounts paid or credited during the financial year should not exceed Rs.75,000/-. If the said amount exceeds Rs.75,000/-, then, the liability for payment arises on the whole of amount paid or credited and not on the amount in excess of Rs.75,000/-.( The limit of Rs.75,000 is applicable from 1.7.2010. Previously it was Rs.50,000)
21 November 2010
In simple words, if the contract amount exceeds Rs.30000/- TDS should be deducted.
If there are number of contracts with the same contractor, having contract value lesser than rs.30000 but in agreegate exceeds Rs 50000 during the financial year, then TDS shall be deducted.
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