Tds on advertisement

This query is : Resolved

N D B (Querist)
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21 August 2015 Hello Experts,

If single payment for advertisement is exceeding Rs. 30000/- and aggregate payment is 66000/- then should we deduct tds only on the payment where tds limit has been exceed ? or we have to deduct on total 66000/- ?

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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21 August 2015 Tds is to be deducted on amount exceeding Rs. 30,000 not on Rs.66,000.

As per Sec. 194C(3),Deduction shall be made from the amount of any sum credited or paid or is likely to be credited or paid to the account of or to the contractor or sub-contractor, if such sum exceed Rs. 30,000.

Further, where the aggregate of the amounts of such sums credited or paid which is likely to be credited or paid during the financial year exceeds Rs. 75,000, the person responsible for paying such sums shall be liable to deduct income-tax under this section;
or,
the tax will be required to be deducted at source where the amount credited or paid to a contractor or sub-contractor exceeds Rs. 30,000 at one time or Rs. 75,000 in the aggregate during the financial year in spite of the fact that separate contracts are entered into with that person.