194C - TDS on contract payment

322 views 5 replies

Suresh Kumar

student

42 Points Joined April 2014

Our company didnot deduct TDS u/s 194C as we thought the aggregate amount of payment would not exceed Rs.1 lakh during 2016-17

but in march the aggregate amount of payment during the year 2016-17 exceeded Rs.1 lakh.

what is the solution to this. how do we deduct TDS and on what amount? interest payable? penalty?

Replies (5)

Guest

You need to deduct TDS on the whole amount from the last credit/payment. However, interest won't apply. Assuming that individual amounts are up to 30K.

Suresh Kumar

student

42 Points Joined April 2014

thank you manish. however, when i deduct tax on whole amount, what date should i show as date of payment while filing q4 return

Guest

Date of last credit/payment.

Suresh Kumar

student

42 Points Joined April 2014

thanks manish for your quick response. appreciate it.
one more question:
if i deduct TDS from one person under say 194C
does it mean i should deduct TDS on other payments to the same person say rent also even if rent payment does not cross the threshold of 1.8 lakh to that same person

Guest

Originally posted by : Suresh Kumar
	if i deduct TDS from one person under say 194Cdoes it mean i should deduct TDS on other payments to the same person say rent also even if rent payment does not cross the threshold of 1.8 lakh to that same person