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TDS on contractual work

Rajkiran Ghosh (479 Points)

03 June 2018

sir i pay contractual work rs 150000 in 2 times in a financial year.... can i deduct tds two times at the time of payment???sir if i pay contractual work to rs

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10 Replies

Manish S Thingalaya (student) (430 Points)
Replied 03 June 2018

you should deduct the TDS us 194C at the time of work done not at the time of payment.

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Rajkiran Ghosh (479 Points)
Replied 03 June 2018

and sir if the amount is rs 20000 in a single payment in a f.y. then will i deduct tds????plz reply me

Manish S Thingalaya (student) (430 Points)
Replied 03 June 2018

No tax is required to be deducted in the following cases:

Where the sum paid or credited in pursuance of any contract does not exceed Rs. 30,000, orwhere the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year does not exceed Rs. 1,00,000 the person responsible for paying such sums will not deduct TDS under this sectionIndividual or HUF not to deduct tax if the payment or amount credited to the contractor is for personal use

(i) No individual or HUF shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for the personal purpose of such individual or any member of HUF

(ii) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN, to the person paying or crediting such amount

Rajkiran Ghosh (479 Points)
Replied 03 June 2018

here individual or huf means the person who will be liable to deduct tax???

Manish S Thingalaya (student) (430 Points)
Replied 03 June 2018

individual who has no furtherance of business. same as HUF, having all head income exept PGBP

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Rajkiran Ghosh (479 Points)
Replied 03 June 2018

in rent when 194 IB will be applicable for tds on rent????

Manish S Thingalaya (student) (430 Points)
Replied 03 June 2018

may this link will help your query :
194IB - https://www.caclubindia.com/articles/details.asp?mod_id=32498

Rajkiran Ghosh (479 Points)
Replied 03 June 2018

sir i have taken rs 10000000 unsecured loan in jan 2012 i alerady deduct tds on interest amount on unsecured loan in f.y.-2017-18 . but i have taken some few amount unsecured loan in march 2018 ... where i calculate that the interest amount on additional some amount loan does not exceed rs 5000 in f.y. 2017-18...so can i deduct tds on some amount of additional unsecured loan in f.y. 2017-18 ???? plz reply sir

Anil Mehta (3 Points)
Replied 03 June 2018

yes, you should deduct TDS u/s 194A as threshold limit is only 5000 and it is cumulatively.
However if you e individual/HUF, liability arise only incase you have undergone tax audit in previous F.Y.

Rajkiran Ghosh (479 Points)
Replied 03 June 2018

sir plz clear me that i will deduct tds on rs 10000000 in f.y. 2017-18 as the interest on unsecured loan exceeds rs 5000 but i donot deduct tds on interest on some amount of additional loan which i have taken on march 2018 as interest on this additional loan does not exceeds of rs 5000 in f.y. 2017-18... Am i right sir??? plz reply me

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