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Tds on down payment

surendra (l;) (53 Points)

19 August 2013

Dear All,

tds u/s 194 c applicable

down payment - 76,000

contract amount- 190,000

whether TDS to be done on down payment?

or at the time of releasing full amount?

pls reply.....

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3 Replies

Nitesh ujjwal (ARTICLE ASSISTANT) (41 Points)
Replied 19 August 2013

Dear :

As per Section 194C of the income tax Act the TDS on Contract and Sub Contracts should be Deducted on individual payment of Rs. 30000 or More and Collectivly Rs. 75000 or more in a year and Such TDS should be Deducted at the time of payment or Credit Whichever is Ealier ..

Hence in your Case, at the time of Down Payment of RS.76000, TDS should be Deducted........ @ rate of 1% or 2% as the Case may be .......

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C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 28 August 2013

agree with nitesh

Sanjay Ghewade (Finance Professional) (56 Points)
Replied 02 September 2013

i am totally agree with Nitesh, TDS should be Deducted at the time of payment or Credit Whichever is Ealier, if individual payment is Rs. 30000 or More or Total amount for the year is Rs. 75000 or more..................