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Tds on contractors
In 194C Limit specified is Rs.30000 per single Transaction and aggregate payments RS.75000 During the year.
For example Payments made to Party X Rs.60000/-transactions are as follows:
Transaction 1: Rs.35000/-
Transaction 2: RS.15000/-
Transaction 3: Rs.10000/-
Now I got a Doubt whether only payment exceeding
Rs.30000/- is liable to deduct TDS or once if the party gets attracted to TDS, we have to Deduct TDS on transaction 2& 3 also
Replies (2)
1. For the current financial year the threshold limit for total transactions, u/s. 194C has been increased to 1 lakh, from 75K. Single transaction limit remains same as 30K
2. So either of the two limits exceeds, the TDS has to be deducted on total payments, including earlier ones.
3. In your case the limit exceeds in first payment itself, so TDS has to be deducted on 35K itself, and on all succeeding payments.
To be deducted on all payments from when it crossed the limit of 30000
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