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Tds on payment to contractor

Narender Yadav (Accounts Manager) (65 Points)

02 March 2017

In F.Y 2016-17 Tds on Contractor limit is Rs 100000.00 I got two bills form our contractor amounting to Rs 15000 & 40000 Shall I have deduct TDS on Rs 55000? Or TDS is not applicable Pls suggest

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9 Replies

(Guest)

deduct tds on all bills

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Baljeet (Associate) (33 Points)
Replied 02 March 2017

Baljeet Singh (CA, B.Com (H)) (954 Points)
Replied 02 March 2017

Hi Narender,

The deduction of TDS u/s 194C is applicable when any of the following two conditions are met:

a) The total payments to a party during a financial year exceed INR 1,00,000/-

b) Any single payment to a party exceeds INR 30,000/-

Please note once TDS becomes applicable, it is to be deducted on ALL the payments made to the concerned.

(Guest)

thanks for sharing this information

shubham shah (shubham) (23 Points)
Replied 03 March 2017

Tds to be deducted on 40000 only.

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Narender Yadav (Accounts Manager) (65 Points)
Replied 03 March 2017

But still limit is not crossed. Or total got more than one bill??

ANINDYA BIKASH MANDAL (DY. MANAGER(FIN)-IND TAX) (24 Points)
Replied 03 March 2017

It is better to deduct and deposit TDS on the full value to avoid dispute with the department

RAHIL (ACCOUNTANCY) (247 Points)
Replied 04 March 2017

For Now,TDS required to be deducted on the bill of Rs.40K only. When total amount from this deductee reaches 100K, then TDS should be deducted from all bills irrespective of Bill Amount.