What is the threshold limit for TDS on consultants?RS. 20,000/- or Rs.30,000/-? This amout is monthly or yearly? If we are paying 3,000 monthly or 2,000 monthly we have to deduct 10% or not?
What is the threshold limit for TDS on consultants?RS. 20,000/- or Rs.30,000/-? This amout is monthly or yearly? If we are paying 3,000 monthly or 2,000 monthly we have to deduct 10% or not?
1) THE THRESHOLD LIMIT FOR CONSULTANCY FEES IS
RS. 30000 PER BILL
RS. 75000 AGGREGATE P.A
2) TDS @ 10% U/S 194J, IF DEDUCTEE PAN NO. IS NOT QUOTED THEN TDS @ 20%
3) NO TDS TO BE DEUCTED ON MONTHLY PAYMENTS OF RS. 2000 OR RS. 3000.
REGARDS,
DEVENDRA
limit is 30000/-
if you pay chg 3000/- p.m. than No diduct tds
TDS WUOULD BE DEDUCTED @ 10% UNDER SEC. 194J, IF PROFESSIONAL FEES IS PAID OR CREDITED EXCEEDING OF RS. 30000 AT ANY TIME DURING THE FINANCIAL YEAR
if monthly payment is 2,000 or 3,000 then there is no need to deduct tds
Consultancy fee is not a contract its a professional fee, therefore tds would be deducted under section 194J
So..
For example we are deducting 7000/- p.m. So it comes to 7000*12=more than 75,000/- p.a. then we have to deduct 10% on Rs. 7,000/- ..?
AND if the amount is 30,000/- or more for sigle payment then also 10%..? Is it right..?
U/s. 194J which deals with TDS provisions on payment of fees for professional services, if the aggregate of sums credited/paid during a financial year exceeds Rs.30,000/- TDS is liable to be deducted.
Hence in your case since you are paying Rs.7,000/- p.m, the annual payment would consequently exceed Rs.30,000/- threshhold limit. TDS would therefore be liable to be deducted @ 10% every month.
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