TDS exemption limit U/s 194C is INR 30,000 in case of a single contract and INR 1,00,000 in case of aggregate amount during the financial year.
But what if we have invoice booked from Apr 19 to Feb 20 is Rs 5500 only and One transaction in Mar 20 is for Rs 30400 so, in this case we have to deduct TDS on 30400 only ?? or TDS on 30400 + Debit note for TDS on Rs 5500 also ??
20 March 2020
Don't get confused. You yourself are having the solution in your query. The two conditions for TDS are : 1. The amount paid or credited to the contractor in a single contract exceeds Rs 30,000. 2. The aggregate amount paid or credited during the financial year exceeds Rs 1,00,000.
Condition 2 is not applicable as the total contract value during the year is not exceeding Rs 1,00,000. Only Condition 1 is applicable to your query on second transaction of Rs 30,400 , hence you shall deduct TDS on amount of Rs 30,400 only, provided Rs 30,400 is exclusive of GST amount.
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