tds of contractor

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manmohan (Querist)
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19 March 2009 i wana know that u/s 194 c of TDS ON CONT. The words representing a contract exceeding rs. 20000 and aggregate of rs 50000. what is a meaning of that iam confused regarding a (PAYMENT or CONTRACT VALUE ).

i have some question ragarding this ..

1.A company makes 2 contract with a contractor of rs. 19000 each so is TDS SHOULD BE DEDUCTED OR NOT ?

2. A CO. MAKES A CONTRACT OF 49000 AND PAYMENT IS DONE RS. 20000 , 20000, 9000 EACH SO WHT SHOULD DO IN THIS CASE?

3. A CO. MAKES A CONTRACT OF 21000?

4. A CO. MAKES 2 CONTRACTS OF 23000 EACH ??

PLZ CAN ANY ONE SOLVE MY PROBLEM ??

manmohan

manmohan (Querist)
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19 March 2009 plz solve this

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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19 March 2009 single time payment should not exceed 20,000 and aggrgate of payment to contractor should not exceed 50,000.

1. no tds
2. no TDS
3. Yes, if single payment os more then Rs. 20,000.
4. Yes, if single payment os more then Rs. 20,000.

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manmohan

manmohan (Querist)
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19 March 2009 first of all thank u sir,

so conclusion is .. contract value is not a matter but only a single payment should not be greater than 20000 and the agrgt payment should not exceed 50000 .