tds of contractor

This query is : Resolved

manmohan (Querist)
Follow

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 ??

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)
Follow

19 March 2009 The rule is that you have to deduct tds if either a single contract exceeds Rs.20000 or multiple contracts below Rs.20000 accumulate to Rs.50000 and above.Thus for
1) not to deduct
2), 3) and 4) deduct