Tds should be deducted or not?

This query is : Resolved

VIDYA DAS (Querist)
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20 June 2008 if indivual payments to a party for a contract didnot exceed Rs20000 but in the last month of the year the total payment exceeded Rs50000 then should we deduct on the whole amount including the first payments?

CA Vivek Jain

CA Vivek Jain (Expert)
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20 June 2008 Yes

Shekar

Shekar (Expert)
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20 June 2008 Yes Vidya..U should deduct(Recover) TDS on all previous payments once the amount crosses Rs.50000..

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Dayal

Dayal (Expert)
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20 June 2008 Yes it is to be deducted on the entire amount.

20000 is for a transactional amount, but it does not rule out the payment for total amount paid during the financial year.