Tds Deduction in case of contract

This query is : Resolved

monga (Querist)
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04 July 2009 Hi, can Anbody tel me whether there has been any tax liabilty u/s 194c in case there is a single bill is more than Rs. 20000/- on which liabilty is made to deduct the TDS but if in whole year amount does not exceed Rs. 50000/-
then whethet we have to deduct tds on the bills following the bill of Rs. 20000/-

Ratan Sharma

Ratan Sharma (Expert)
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04 July 2009 Hi,
In my opinion if a single payment exceeds Rs. 20000/- then you will have to deduct the TDS or if the payment is made for less than Rs. 20,000/- but aggregage in a year exceeds Rs. 50,000/- then you will have to deduct tax.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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04 July 2009 TDS is applicable if single bill is more than Rs. 20,000/-.

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CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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04 July 2009 No. If I am understanding your query exactly, then TDS shall be liable to be deducted only on the bill which is exceeding Rs. 20,000/- If you get any other bill of lower amount, then TDS shall not be deducted on that bill unless and untill the total amount exceeds Rs.50000/-.