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TDS Contract / 194C

David (B.Com) (76 Points)

30 October 2023

Sir/Madam,
I have to made a payment of Rs 46000/- for a 3 different invoice of same vendor.All invoices are below 30,000. Whether I have to deduct TDS u/s 194C

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 30 October 2023

What you received through the invoice from vendor...?? Service or Goods...?

If service and its should be classified 194C then Yes TDS will be deduct the payment...

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N. A (JOB) (45 Points)
Replied 30 October 2023

What is the limit to deduct TDS u/s 194C?

The following is the limit applicable under section 194C to deduct TDS:

The amount paid or credit is a single contract that exceeds Rs 30,000
The amount paid or credit during the financial year altogether exceeds Rs 1,00,000.

In case if it is towards provision of service and as you said each invoice value didn't exceed Rs.30,000/- but you are making the payment for all the 3 invoices as a single payment i.e., Rs.46,000/- then you must deduct TDS on the base value of each invoice in applicable rate.

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BALA CHANDRAN (6 Points)
Replied 30 October 2023

Si far paid Rs.46000 for three different Invoices there is not exceeding the threshold limit but with in the financial year if exceeding the payment of Rs.1 lakhs to this vendor then you can deduct TDS on payment

sabyasachi mukherjee (27658 Points)
Replied 30 October 2023

Time limit to deduct tds must be essential.

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 31 October 2023

By default you can start deducting tds 1% or 2% due avoid practical issues.

Once it cross 1Lac , you have to deduct entire tax in one invoice which can create practical issues.

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 31 October 2023

@ Bala Chandran,

The payment is exceeds above 30k.
Check out the provisions...