CA Devanand Jethanandani (CA) (8003 Points)
29 May 2014Whether the thresh hold limit of TDS u/s 194C is Rs.30,000/- per individual contract or per bill ?
Example,
If individual contract is for Rs.48,000 p.a., but billing happens quarterly Rs.12,000 per quarter, whether TDS will be applicable in this case ??
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 29 May 2014
CA Devanand Jethanandani
(CA)
(8003 Points)
Replied 30 May 2014
Hi Tribhuvan,
Thanks for your reply.
Can you please further clarify, that you mean to say TDS will not be applicable if single payment does not exceed Rs.30000 (aggregate not exceeding 75000) even though single contract amount exceeds Rs.30000 but less than 75000, am I right ??
Thanks
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 30 May 2014
Lalit Sangani
(M.Com. Asst. Manager Account)
(736 Points)
Replied 30 May 2014
as the condition said by Mr. Devanand TDS should not be deducted, in their case neither single payment is exceeds of Rs.30000/- nor agreegate payment exceeds of Rs. 75000/- P.A.
akanksha
(CA Final Student)
(325 Points)
Replied 30 May 2014
Lalit Sangani Sir,
It means that if single contract value is more that 30000.00 then no TDS is to be deducted since payment is done in parts but if this payment in parts in aggregate is more than 70000 then tds is to be deducted on whole amount of 70000 or more as the case may be.
Lalit Sangani
(M.Com. Asst. Manager Account)
(736 Points)
Replied 30 May 2014
Dear Akanksha,
I am totaly agree with you.
as example given by Mr. Devanand, in that case tds should not be deducted on the value.
"Example,
If individual contract is for Rs.48,000 p.a., but billing happens quarterly Rs.12,000 per quarter, whether TDS will be applicable in this case ??"
akanksha
(CA Final Student)
(325 Points)
Replied 30 May 2014
Now for example :
Payment made till 31.10.2013 is Rs 65000.00 (In parts of Rs 15000.00 so no TDS deducted)
Now on 15.11.2013 furthur Rs 15000.00 is to be paid. Now the aggregate limit of Rs 70000 is exceeding. In this case whether the assessee while making the payment of Rs 15000.00 will deduct 1% TDS on Rs 80000.00 (65000 + 15000) i.e. Rs 800 ?
Or
TDS will be deducted on only rs 15000???
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 30 May 2014
Rupesh Soni
(Taxation Consultant & CA final student)
(504 Points)
Replied 30 May 2014
Karan arora
(Article assistant)
(53 Points)
Replied 31 May 2014
CA Lokesh Kumar Tiwari
(Asst. Finance Manager)
(195 Points)
Replied 31 May 2014
Dear Akanksha,
if we talk theoritically, in ur case, TDS is deductible on Rs.80000 but in practical it rarely happens.
because when we do business we most probably know that whether we are receiving any service from any vendor singlly in a year or it will be through out the year. so if we take any one time service we generally dont deduct tax if amount is less than Rs.30000 but for our regular vendors, company keeps itself on safer side and deduct TDS from very beginning irrespective of amount of the bill. means if bill if for say Rs.5000 we deduct TDS on that bill too.
CA Santosh Dhumal
(Practising CA.)
(594 Points)
Replied 02 June 2014
akanksha
(CA Final Student)
(325 Points)
Replied 02 June 2014
Thank You Ca Lokesh Kumar Tiwari Sir
I know that in practical life , we deduct tds on every bill as we are aware of future transactions.
But theoritically, please make it clear as to whether we have to take payment amount or bill amount for deduction of tds in case of single payment in a year
thank you
srinivasan
(service)
(898 Points)
Replied 02 June 2014
CAclubindia
