Interpretation of TDS limits

Ravishankar K (Accountant) (461 Points)

28 April 2011  

Dear Members

 

Kindly advise me how to interpret the TDS limits for non salary payments, i.e contractors for EG

under sec 194 C the limit is 30000 Single Bill , (75000 IN year)


Now we are paying a contractor Rs.10000/- shall we deduct TDS on the 10000 payment, because it is not sure that in future the same person will be providing us the services or not, there is possibility or there is not, so in this case how to treat it, also in future in the same year if the amount paid by single single bill exceeds the limit of 75000/- then do we need to deduct the TDS on the amount above 75000 i.e if total payment in year is 80000 do we need to deduct TDS on 75000 or on total 80000. klindly advise me friends , ;)