Tds on professional charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2014 Hi,
My company is paying monthly fees of Rs.2500 to our lawyers as retainer fees. Since it was not crossing Rs.30000/- per annum we were not deducting TDS u/s 194J. But current year we had paid fees to them for a case and we have deducted tds for the same. But on the whole since the amount paid to them separately and as monthly fees exceeds Rs.30000/-, should we deduct TDS from the monthly fees also? Then i will have to pay TDS from April 2013 onwards with interest. Kindly clarify

AVTAR SINGH

AVTAR SINGH (Expert)
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04 February 2014 When the amount is paid in parts, the liability to deduct TDS arises when it crosses Rs.30000. Suppose payment exceeds Rs.30,000 in December, deduct TDS on all transactions till Dec, and deposit in January. No interest when the deduction made in December is deposited by 7th Jan.