TDS limit (20000 Vs. 50000)

This query is : Resolved

Guest

Guest (Querist)

24 September 2008 Hi Experts

Suppose i have transacted with one party for Rs. 2000/- then 5000/- then 29000/- on which i am liable to make TDS u/s. 194C..

Now TDS will be made on which amount whether on 29000/- only as total does not excess 50000/- during the year or on all as one bill is more than Rs. 20000/-

Further the section tells that "payment or Credit during the year"

suppose one party has opening balance of Rs. 60000/- which is paid in this year and also transacted for Rs. 15000/- during the year.. Now TDS u/s. 194C is required to be made on 15000/- or not? as the payment during the year exceeds Rs. 50000/-

Thanks
Rohit

Jitender

Jitender (Expert)
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24 September 2008 1 tds will be deducted if single payment or credit exceeds 20000 or in total exceeds 50000;if a single transaction does not exceed 20000.

2) each year has to be cosidered saparately for tds.