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TDS

TDS / TCS 580 views 3 replies

Dear friends,

I have some doubt in TDS on contractor, hope u will clarify the same.

It is known that when any payment or credit is made to the contractor exceeding Rs. 20000/-, then the contractee party is liable to deduct TDS.

But if the first payment made to the contractor exceeds Rs. 20000/- and subsequent payments doesnt exceed Rs. 20000/- per payment and also the aggregate of payments or credit made during the whole year doesnt exceed Rs. 50000/-, is the contractee liable to deduct TDS on payments made after first payment?

Replies (3)

Yes.

He is liable.

If One of the Conditions is satisfied, then tax is to be deducted on all payments.

Yes,

He should deduct the TDS bcz as per IT- Act :-

No deduction shall be made under sub-section (1) or sub-section (2) from -

(i) Any sum credited or paid in pursuance of any contract the consideration for which does not exceed twenty thousand rupees

If he paid 20000 or more in this case section 194C applicable, and should be deduct TDS on the same.

Yupp above two Sir are correct !!


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