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TDS ON CONTRACTOR

student (WORKING) (757 Points)

13 December 2007

If in a year only at one timr Rs. 20000/- is paid or credited (i.e. on 1/4/07) & in full year total pymt/credit doesn't exceed 50000/- so whether TDS will be deducted on that RS. 20000/- or on all amts (where aggregate do not excced 50000/-).

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(Guest)

Threshold Limit for payment to contracors - Rs. 20000 , therefore tds will be applicable even if payment does not exceed Rs.50000/- in a year TDS RATES for Payment to contractors Company <= 1 crore 2.06 Company > 1 crore 2.27

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CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 14 December 2007

As per sub-section 3(i) No deduction shall bne made under sub section 1 oe 2 from the amount of any sum paid or likely to be credited or pid to the account of , or to, the contractor or sub contractor, if such sum does not exceed twenty thousand Rs. Provided.........exceeds fifty thousand Rs. As I understyood from the query, neither the payment against single contract/ single transaction is exceeding Rs. 20000/- nor the total volume is exeeding Rs. 50000/-, hence no requirement of TDS u/s. 194C

Pandiri Ramu (Business Analyst) (613 Points)
Replied 14 December 2007

Could you pls let me know the 1 crore is contact amount or turnover of the contractee

(Guest)

1crore is the total turnover limit of the contractee

(Guest)

Dear Sir, If TDS on Contract 2.27 is applicable if contract price is exceding Rs 20000 for a year or Single time payment. pls replay it to my E Mail. Thanking you Pradeep

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(Guest)

the total contractor turn over

(Guest)

hi this is sravanth if the contract amount exceeds 1000000 thecontractor is deducted at the rate of 2.27

CA.Ganesan (Chartered Accountant) (36 Points)
Replied 14 December 2007

One crore means, total turnover of the contractee for the respective previous year.

CA.Ganesan (Chartered Accountant) (36 Points)
Replied 14 December 2007

in during the PY any amount paid/credited, more than Rs.20K/- to contaractor/subcontractor, TDS deduction is to be done even the annual paid/credited amount does not exeed of Rs.50K. If exceeds of Rs.50K during the PYr, then on whole amount TDS will attract and is to be deducted & paid accordingly.

(Guest)

payment to contractor in excss of 20000/-at one time or total payment in excess of 50000/- in a year are liable to u/s 194C to deduct a tax

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CA vikash Jain (CHARTERED ACCOUNTANT) (300 Points)
Replied 15 December 2007

the tax will required to be deducted at source where the amount credited or paid to a contractor or sub contractor exceeds Rs. 20000 at one time or rs.50000 in the aggregate during a financial year inspite of the fact that sepate contracts are entered into with tha person.

Nagaraju Pogula (Partner) (175 Points)
Replied 17 December 2007

Yes, if single payment exceeding Rs. 20000.00 or aggregate payment exceeding Rs. 50000.00, we start deducting the TDS. On which amount we have to deduct the TDS, above 20k only or 50k only or including the 20k or 50k ?

(Guest)

It has not been mentioned anywhere whether it is to be deducted on whole the amt. or only on the amount exceeding rs. 20000/-. However if possible, it should be deducted on whole the amt.