TDS u/s 194C

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2011
During a year, a single contract was of Rs.40,000/-(exceeds Rs.30,000/-) and other two contracts were of Rs.10,000/- each.

TDS will be deducted on single contract of Rs.40,000/-. Does TDS will also be deducted on other two contracts also as the total payments made were Rs.60,000/-(they are below Rs75,000/- p.a.

Please suggest.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 July 2011 If the contractor is the same person, and once you have deducted TDS on 40000/-, then
it is advisable to deduct TDS on his further contracts also.

However, if the two 10000/+10000/ bills are
received earlier than the 40000 bill, it will be sufficient to deduct TDS on the 40000 bill and can wait for crossing the limit of 75000/-

Please wait for more comments on this issue.