TDS u/s 194C payment to Contractors

Page no : 2

(Guest)

TDS on Rs.52000/-

Upgrade to CAclubindia Pro. Subscribe Now!

Satish (CA Final Student) (479 Points)
Replied 10 September 2009

Hey Akanksha, 50000 is not an exemption limit. If collective payments or credits during the financial year does not exceed Rs. 50000, there is no need to deduct a tax at all. But if the same exceeds 50000, you need to deduct the tax on whole amount from 1st rupee. At the begining of the year, some contracts, we dont know whether the amount payable or to be credited will exceed Rs. 50000 or not. Hence, this is the facility given to the deductor for making the deduction. Also where you make a single payment or single credit of more than 20000/- you need to deduct tax immediately.

I hope u are now satisfied with the answer.

sagar (CA Final) (379 Points)
Replied 10 September 2009

yes it is on 52,000 with interest calculated from 04/04 onwards

M.V.S.S.SURYA BHAGAVAN (income tax practitioner) (67 Points)
Replied 10 September 2009

Originally posted by :Akanksha Srivastava
"	Following is the series of payment to Contracyor- 02.04.2008 - Rs.10000 15.05.2008- Rs.20000 10.06.2008 - Rs 10000 25.06.2008- Rs 12000 On which Amt Tax should be deducted on aggregate Rs.52000 or Rs.12000 By the Assessee?	"

TDS should be mad on entire Rs.52000

MAHESHA R (ACCOUNTANT) (35 Points)
Replied 12 September 2009

What is the rate of late payment of TDS on contractor

Upgrade to CAclubindia Pro. Subscribe Now!

Subash Srinivasan (chartered accountant) (390 Points)
Replied 12 September 2009

As per Section 194C:-No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed twenty thousand rupees Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.

From the above provisions Tax to be on Rs.52000

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 13 September 2009

Originally posted by :Akanksha Srivastava
"	Following is the series of payment to Contracyor- 02.04.2008 - Rs.10000 15.05.2008- Rs.20000 10.06.2008 - Rs 10000 25.06.2008- Rs 12000 On which Amt Tax should be deducted on aggregate Rs.52000 or Rs.12000 By the Assessee? TDS will be deduct on total payment of rs.52000/-	"