Tds deduction on contractor
This query is : Resolved
08 September 2012
hiiiii
According to 194c tds should be deducted when any single bill is above 30000 or sum of payment is above 75000 in a financial year.
So My que. is that if a person is not liable to deduct tds in starting of the year because the amt. is not exceeding 30000 or 75000 and in the mid. of the year limit is crossed so from which time tds should be deducted and what would be the date of deduction ?
According to 194c tds should be deducted when any single bill is above 30000 or sum of payment is above 75000 in a financial year.
So My que. is that if a person is not liable to deduct tds in starting of the year because the amt. is not exceeding 30000 or 75000 and in the mid. of the year limit is crossed so from which time tds should be deducted and what would be the date of deduction ?
08 September 2012
tds should de deducted on the date when limit is crossed.
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08 September 2012
In such case TDS would be deduct on total amount paid upto the date at the time of first deduction of TDS from the amount paid then and the date of deduction of TDS would be the same the date of the actual deduction made. For examaple
If the payament making Rs.10000 for every month assume. The limit for 194c doesn't exceeds upto payment of 7th month and in the 8th month payment exceeds the limit for 194C and liable to deduct tds so from the 8th month payment deduct total TDS on the payment for 8 months amount i.e on Rs.80,000 from the succeeding months deduct TDS from each payment of Amount.
If the first you paid Rs.10000 and later you paid Rs.35000 then TDS would be deduct on Rs.35000 at the time of payment. In case during the year your payments exceeds the Rs.75000 then TDS would be deduct on total amount you paid upto date by subtracting Rs.35000( because you have already deducted on it).
Are you understand.
OM SAI SRI SAI JAI JAI SAI
If the payament making Rs.10000 for every month assume. The limit for 194c doesn't exceeds upto payment of 7th month and in the 8th month payment exceeds the limit for 194C and liable to deduct tds so from the 8th month payment deduct total TDS on the payment for 8 months amount i.e on Rs.80,000 from the succeeding months deduct TDS from each payment of Amount.
If the first you paid Rs.10000 and later you paid Rs.35000 then TDS would be deduct on Rs.35000 at the time of payment. In case during the year your payments exceeds the Rs.75000 then TDS would be deduct on total amount you paid upto date by subtracting Rs.35000( because you have already deducted on it).
Are you understand.
OM SAI SRI SAI JAI JAI SAI
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08 September 2012
assume 1st 5 month payment is Rs. 10000 pm and in the six month paymentis 31000 and tds is deducted on 31000+10000 ,and not in the 1st four month 10000 Rs.pm. Is it Correct ? and is it assume that 75000 limit is also crossed ?
08 September 2012
Tds would be deduct on Rs.81000 from the payment of Sixth month.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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08 September 2012
ok. and if tds is not deducted so for calculate the default, date of payment would be 07/10/20xx ???
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08 September 2012
Yes, and Date of payment means date on which the amount paid to the payee. I.e Incase you paid amount today the date of payment means today. The date on which tax deposited(i.e paid) to the government is called date of tax deposited or paid.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
08 September 2012
ok. thank you. now my query is resolved.
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