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Section 194J

Sandeep Sharma (Accounts executive) (552 Points)

25 July 2019

If i receive monthly bill from consultancy of Rs. 5k from jan month and in the month of July it exceeds threshold limit of 30k. So do i need to deduct tds from July or from January??

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11 Replies

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 25 July 2019

The threshold limit are: single bill of RS. 30000 or aggregate of RS. 100000 in one year.

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rama krishnan (12234 Points)
Replied 25 July 2019

for professional payments, the threshold limit on the whole is 30000 per f y

sunil jagatha (47 Points)
Replied 26 July 2019

Hello Sandeep,

As per section 194J, In case of consultancy payments, if payment exceeds in aggregate Rs30,000 we have to deduct TDS

But in this case your question might be wrong. If it is right, there is no deduction of TDS because Jan-Mar is one financial year of amount of Rs.15,000 and Apr-Jul is another financial year of amount of Rs.20000. So there is no exceeding of Rs.30000

If any further details call me at 8317543300

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RAJA P M ("Do the Right Thing...!!!") (128004 Points)
Replied 26 July 2019

Yes... I agreed with Mr Sunil Jagatha...

@ Sandeep Sharma.,

If You are continuing the consulting then You can deduct TDS or wait the limit crossed. After You will deduct.

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Sandeep Sharma (Accounts executive) (552 Points)
Replied 26 July 2019

Thank you sunil sir...so actually if i continue receiving of consultancy bills from April 2019 to March 2020 of Rs. 5k monthly then i need to deduct tds from October 2019 or from April 2019?? plz help sir

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RAJA P M ("Do the Right Thing...!!!") (128004 Points)
Replied 26 July 2019

You can deduct TDS from October on total value...
If it's reached Rs 30k on October then deduct TDS on 30k...

So, simple.

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Sandeep Sharma (Accounts executive) (552 Points)
Replied 26 July 2019

Ok thank you sir raja sir so in that case do i also need to pay interest on late deduction or it will be waived off ethically??

chandrasekhar Pal (Sr. Accountant ) (27 Points)
Replied 26 July 2019

consultancy fees /Profession fee(194J) Threshold limit single Invoice INR 30,000/- ,its not mandatory to deduct as tds u/s 194J..

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 26 July 2019

1. There will not be any interest since provision itself allows not to deduct TDS when the threshold limit had not crossed Rs. 30,000 in a FY.
2. But TDS u/s 194J @ 10% should be deducted on the entire payment made till date. For example Total payment made till date Rs. 35,000 and last payment is Rs. 5,000 for the month of July. TDS for the month of July should be deducted on the entire Rs. 35,000 @ 10% which comes to Rs. 3,500 and remit the same within the due date.
Please correct me if the above solution has an alternative view.

2 Like