Tds on contract - sec194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 Dear Sir,

I have a query on TDS on Contract.
Query:

Suppose i receive labour job bill amounting to Rs. 33000/- & I deduct TDS on it at appropriate rate. Again after some months during the same financial year i receive bill from the same party amounting to Rs.5000/- for labour job done. Do i require to deduct TDS on this bill? or i should check & Confirm whether aggregate amount of Labour job during the year crosses threshold limit of Rs.75,000/-? Is it mentioned in Act or some other guidance material that once i deduct TDS it is my liability to deduct TDS on subsequent bills also even though they are below Rs.30000/-? I need supportings to clear my doubts.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2014 No TDS is to be made where sum credited or paid or likely to be credited or paid does not exceed Rs.30000

but you have to see that the aggregate of the amount of such sums paid or payable or likely to be paid or payable in the financial year does not exceeds Rs.75,000

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 What if I receive 3 bills from the same party during the same financial year. Two amounting to Rs.33000/- each & one for Rs.5000/-. Aggregate value would be Rs. 71000/-. Do i require to deduct TDS on two bills which exceeds Rs.30000/- or i require to deduct TDS on all 3 bills? Is there any guidance note or notification available for my query. please elaborate.

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2014 only on the bill exceeding Rs.30000 if the aggregate is less than 75000

but if the aggregate total exceeds Rs.75000 then on all the bills

you can directly refer the provision contained it is self explanatory.

but in practical life for being on safer side people usually deducts TDS on all the bills

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 Thank you so much sourabh.....