06 July 2021
If the transaction is covered under section 194C and consolidated contracted price for the work agreed is Rs.1,15,000/-. Then threshold limit of Rs.30,000/- prescribed under Section 194C per contract has exceeded. Hence liable to deduct tax on Rs.1,15,000/- But if the principal object of contract is sale of goods and contract for work is supplementary then this section won't apply on value of goods i.e., Rs.100,000/-. In that case TDS will not be attracted as threshold of Rs.30,000/- has not been exceeded. It is better to seek professional opinion with complete details of the transaction
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