194c payment to contracter tds

Page no : 2

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 02 August 2012

Agree with All

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Tony John (Chartered Accountant) (6085 Points)
Replied 02 August 2012

TDS to be deducted on Rs.90000.

Ajaz Ahanger (NA) (21 Points)
Replied 02 August 2012

Since the amount has exceeded Rs 75000/- which is the threshold for one year you must deduct the TDS for whole amount of Rs 90000/-.

Sakil Ahamed (AUDIT ASSISTANCE) (21 Points)
Replied 02 August 2012

TDS shall be deducted on 90,000/-

rifaskt (article) (21 Points)
Replied 02 August 2012

I have doubt about deducting TDS on second payment? Sec. Says to deduct TDS on single payment exceed Rs 30000. But siingle payment not exceeded here.

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CA ankit gangwal (chartered accountant) (23 Points)
Replied 03 August 2012

in sec 194C it has been given either Rs.30000 per payment or Rs. 75000 per year. Therefore even if individual payments do not exceed Rs30000 and the entire payment for the year exceeds Rs75000 then TDS will be deducted on the entire amount.

sachin sharma (ACCOUNTANT) (42 Points)
Replied 03 August 2012

full amount 90,000/- agree with all

Prateek Jayachandra (Tax & Audit Professional) (49 Points)
Replied 03 August 2012

Such small value transactions are, most of the time, by people whose income itself does not cross the BEL or subject to Tax Audit. Hence, such payments below Rs. 75000 are excluded.

Rs 75,000 is not a type of exemption but rather a threshold.

Hence, tax to be deducted on the entire amount if it crosses the limit & it;s applicable to all TDS sections.

CA Viral Doshi (Audit Consultant) (22 Points)
Replied 04 November 2012

I ask to those who r saying that tds should be made from 2nd payment onwards. In my opinion it should be made from 4th payment onwards.. What say??

CA Viral Doshi (Audit Consultant) (22 Points)
Replied 04 November 2012

Because the threshold limit of Rs. 75000 does not exceed till the 3rd payment.. (25000*3). And on 4th payment of Rs. 15000, total payment comes to Rs. 90000.. So in my opinion, tds should be made at the time of making 4th payment and NOT at the time of making 2nd payment.. What say??