Tds for payment to logistics

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2017 Hi Experts,

Is it mandatory to deduct TDS for the payment we make to shipping company like Fedex? We are assuming the aggregate payment to be less than Rs 1lakhs per year. Please help.

Thanks,
Jagadish

HEMANT MISHRA

HEMANT MISHRA (Expert)
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11 September 2017 If single contract is for Rs. 100000 then you need to deduct tds u/s 194c. else if said amount is lump sum then don't need to deduct because threshold limit has been revised from 75000 to 1 Lakh.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2017 Sorry I didn't understand.

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HEMANT MISHRA

HEMANT MISHRA (Expert)
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11 September 2017 As you said in DM, you make the payment of Rs.10K every month and you are sure that it will not breach the threshold limit i.e Rs. 1 Lakh during the financial year. Then you don't need to deduct TDS.

I hope it is clear now.