Christo Roby M (PCC Student) (69 Points)
03 February 2010
If a paymenyt of rs. 30000/- is paid in aggragate to Mr. X for Printing and an amount of Rs. 40000/- is paid to him for Advertising contract, and no tds is deducted from Mr. X .weather the total amount paid to Mr. X is to be disallowed u/s 40(a).
If answer is yes or no which part specifically say so?
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 03 February 2010
Both payments are covered u/s 194C, if single payment 20 K or aggragate above 50000/- tds has to be deducted.
Max Payne
(employed)
(2574 Points)
Replied 03 February 2010
What is the type of person making payment? Individual, company, firm, other??
Disallowance will come because printing and advertising are 'works' and TDS should be deducted under sec 194C of the act.
The payments will be disallowed u/s 40(a)(i) if payee is a non resident, and 40(a)(ia) if the payee is resident.
Bt what is the type of person making payment?
In case of individuals, HUFs, AOPs, BOIs, they are required to deduct TDS, only if they were subject to tax audit by crossing the turnover limit of 40 lakhs in the immediately preceding previous year....
Amir
(Learner)
(4016 Points)
Replied 03 February 2010
Dear Christo,
If these are single payments of Rs. 30,000 & Rs. 40,000, then TDS is applicable on both these payments since individually the limit of Rs. 20,000 is exceeded.Therefore if TDS is not deducted then entire amount would be disallowed.
If these payments consist of more then 1 contracts each less then Rs. 20,000 then TDS is not attracted in the present case since limit of Rs. 50,000 in case of aggregate of payments is not exceeded.
CAclubindia
