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.
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.
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