Originally posted by : nitin |
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Hi,
I have few doubts,
1.I read somewhere online that if business turnover is over R.1 Crore per F.Y then only TDS is to be deducted for Contractors. Is it TRUE ?
2.I had paid Advance amount to my Contractor for a certain work in December 2014 and balance payment have to make this month. I had not deducted TDS on the Advance amount i paid. So i can deduct the total amount from the bill or have to deduct separate TDS amount for the advance amount paid ?
Please Clarify. |
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1. Yes, in case of an Individual/HUF/AOP/BOI, if tax audit was not applicable in the previous F.Y., then they are not liable to deduct TDS in the current F.Y.
- sub-clause (l) of clause (i) of Explanation to sub-section 7 of section 194C.
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2. Where advance payments are made, tax will have to be deducted if the total payment is likely to exceed Rs. 30,000 because sub-section (1) of section 194C refers to 'any sum' paid/credited, whichever is earlier.
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Hence, if the threshold limit is exceeding, deduct TDS separately on the advance amount paid and deposit with interest.