Tds on payment to contractor

deduct tds on all bills 

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/-

OR

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.

thanks for sharing this information 

Tds to be deducted on 40000 only.

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

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.

Agree beacuase Single Transaction is 40000 that is more than 30000. Only Tds on second bill.