Sanjay (Student) (112 Points)
02 July 2011Hi All,
We have received two bills from one of our contractors towards purchase of Laptops amounting90,000/- and towards AMC charges of INR 24000/-. I want to know whether TDS amount is deductible on AMC Charges or not and also tell me the rate of TDS.
Thanks,
Sanjay Bhagat
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 02 July 2011
as amc charges r lower than specified limit hence tds should not be deducted.
rectify me if i am wrong
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 02 July 2011
Hi, under this situation section 194c will be applicable , and TDS may or may not be deducted depending on the situation :
situaition 1 : if during the previous year no other bill of same contractor has been raised then no TDS is required to be deducted as Rs. 24000 is below the ceiling limit .
situation 2 : if any other bill has been raised thereby crossing the financial yeare ceiling limit of Rs. 70000 along with this bill then TDS is required to be deducted .
Ex : if other bill of Rs . 50000 has been raised along with this bill then tds is required to be deducted on both.
Anjaly.P.A
( Article( CA Final))
(221 Points)
Replied 02 July 2011
If the payment is made before 30.06.2010, TDS should be made u/s 194C.
If after that date, the limit has been increased to 30000 per paymnt & agregate 75000/-
Sanjay
(Student)
(112 Points)
Replied 06 July 2011
Hi all,
Thanks for your valuable replies.
Dear I am getting confused with you answer. so can you explain me whether TDS is deductible on AMC (Total Bill amount is INR 24,000/-) with the consideration that we have also purchased laptop(Bill amount is INR 90,000)from the same vendor. Actually, I want to know whether the condition of aggregate (i.e. single payment =INR 30,000 or aggregate of small payments => 75,000/-) will apply on both the bills or not????
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 06 July 2011
On transaction of purchase TDS provisions are not applicable. TDS U/s 194C is deductible only on AMC Charges.
*
Here AMC charges paid 24000/- i.e. less than 30000/-
If you pay further AMC in respect of other 2 computers also to the same vendor for a single bill of 48000/ - then AMC charges will be deducted as this will constitute a single payment exceeding30000/- , TDS will be deducted on48000/-. and not on72000 as the limit of75000/- has not yet crossed.
*
Do not give more THAN 3000/-AMC to this person now , otherwise on exceeding the total AMCs to 75000/- TDS is required to be deducted on 24000/- also WHICH WAS EXEMPT in the first instance earlier.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 06 July 2011
| Originally posted by : Paras Bafna | ||
 |
On transaction of purchase TDS provisions are not applicable. TDS U/s 194C is deductible only on AMC Charges. * Here AMC charges paid 24000/- i.e. less than 30000/- If you pay further AMC in respect of other 2 computers also to the same vendor for a single bill of 48000/ - then AMC charges will be deducted as this will constitute a single payment exceeding30000/- , TDS will be deducted on48000/-. and not on72000 as the limit of75000/- has not yet crossed. * Do not give more THAN 3000/-AMC to this person now , otherwise on exceeding the total AMCs to 75000/- TDS is required to be deducted on 24000/- also WHICH WAS EXEMPT in the first instance earlier. |
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