Dear Experts,
I paid a contractor for three times in different dates each worth Rs 27000.
Since the amount was below 30000, I didn’t deduct tds u/s 194C though already paid 81000.
Now I have to pay for another bill of Rs 25000 and adding this new bill, total payment would cross 100000 and I'm liable to deduct tds.
My question is, how much tds I should deduct now? Will it be 250 (1% on 25000) or it will be 1060 ( 1% on 106000).
Please guide me.
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194C TDS Deduction Confusion
Replies (11)
If the payment that is being made to the contractor does not exceed Rs. 30,000, No TDS on payment to contractor is required to be deducted. However, if the total of all such payments made or to be made during a financial year exceeds Rs. 75,000; TDS shall be deducted under Section 194C at the rates mentioned. So total instalment payments must be within a financial year.
To be very clear.! you need to deduct TDS on 1,06,000
On full amount
First 3 payments were in Q2 and return filed. How to show this tds of 1060 in Q3 since some bills were of last quarter
Just show 106000 in Q3 TDS return on which 1060 is deducted.
You haven't shown those transactions in last Q as it does not cross the limit., So, there will be no issues showing the full amount the the Q3... But the question is ... The interest should be calculated from the date of payment. ? I'm not sure about that sorry.
Should I pay interest for previous three tds payment?
Though not sure whether interest is payable on the first three TDS payments but I think that since you were justified in not deducting TDS during those payments as threshold limit was not crossed during that period, so interest is not payable on them . But no doubt TDS of Rs 1060 is deductible now from the payment of Rs 25000 .
Agreed with above comment
Agree with adhip ji
Yeah..
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