Ritesh (CA Final) (326 Points)
19 February 2010Hi all,
If an Advertising Agency raises bills on client in a particular F.Y, one exceeding Rs. 20000 but total not exceeding Rs. 50,000 in a year. Whether Client would deduct Tds on Entire Bills raised on him or only on the abovementioned bill?
Also, while computing limit of Rs. 20,000/Rs..50,000 for applicability of Sec. 194C, Whether Service Tax component mentioned in the invoice would be considered?
Thanks in Advance
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 19 February 2010
TDS u/s 194C deductible if a single bill crosses Rs. 20,000 or yearly billing crosses Rs. 50,000/-. In you case since one bill has crossed Rs. 20,000/- TDS deductible. Amount inclusive of Service Tax to be considered.
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
agree with Aditya sir.....
The word "or" has been used....
TDS u/s 194C deductible if a single bill crosses Rs. 20,000 or yearly billing cross Rs. 50,000/- since one bill has crossed Rs. 20,000/- TDS deductible.
Ritesh
(CA Final)
(326 Points)
Replied 19 February 2010
Mr. Aditya Maheshwari
Thanks for your reply.But so far, i have got contrasting views on above matter. As per some, Tds would be deductible only on that one single bill. As per others, Tds would be deductible on all the bills.
Is it specifically mentioned somewhere?Since going by the wordings of what i have read in Mr. Vinod Gupta Sir's book regarding Sec. 194C(3), it seems to me as if Tds would deduct only on that one particular bill. Thats why i am totally confused.
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 19 February 2010
As one bill exceeds the 20K limit, TDS irrespective of whether the amount crosses 50K mark or not should be deducted on the whole bill for the year
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
Dear Ritesh...
The ACt has mentioned Rs.20000/- single bill OR Rs.50000/- year.....
TDS should be deducted in ur case...
Ritesh
(CA Final)
(326 Points)
Replied 19 February 2010
Dear C. Balaji
Where is it mentioned? I may have missed it.
Amir
(Learner)
(4016 Points)
Replied 19 February 2010
Dear Ritesh,
Case 1
Contract A = 19,000
Contract B = 15,000
Contract C = 15,000
No TDS is to be deducted in this case
Case 2
Contract A = 19,000
Contract B = 22,000
TDS is to be deducted on on Contract "B"
Case3
Contract A = 22,000
Contract B = 22,000
TDS is to be deducted on on both Contracts
Case 4
Contract A = 19,000
Contract B = 19,000
Contract C = 19,000
Contract D = 19,000
TDS is to be deducted on All Contracts.
Case 5
Contract A = 39,000
Contract B = 19,000
TDS is to be deducted on both contracts
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
Come on mate it is understandable....
Amir Bhai has come with a good example..
I think u will be clear now....
Ritesh
(CA Final)
(326 Points)
Replied 19 February 2010
Dear Amir
Thanks for replying.
My case falls under your given Case 2. Thats what i also believe, but not so sure.
Ritesh
(CA Final)
(326 Points)
Replied 19 February 2010
Dear Amir
Thanks for replying.
My case falls under your given Case 2. Thats what i also believe, but not so sure.
Ritesh
(CA Final)
(326 Points)
Replied 19 February 2010
Dear C. Balaji
I would like you to have a look at Mr. Amir's second case..
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
why Mr...???
Case 2 - Contract B exceeds Rs. 20000/- so deduct TDS....
Ritesh
(CA Final)
(326 Points)
Replied 19 February 2010
Mr. C. Balaji
The Contracts which Mr. Amir has mentioned is for same party. So going by what you are saying, wouldn't Tds be deductible on both contracts?
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
