when tds become chargeable to the person u/s194c

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can anyone tell me the limit for charging the tds u/s 194c is 20000/- or 50000/-

 

 

darshi

Replies (10)

Dear darsh*ta As per section 194C of IT ACT,1961 if you make a single payment in excess of Rs 20000, then you are liable to deduct tds on this payment. but if two or three contracts make in excess of Rs 50000 P.a. then you also have liable to deduct tds.

Let take an example

If A is yours Contractor and you pay him in excess of Rs 20000 in single payment then you should deduct Tds as prescribed rate, if you make payment in installments and your gross payment makes it in excess of Rs 50000 then you r lible to deduct tds.

hope you should understand with this example.

My Dear Friends Darshi

The limit is Rs.20000/- for the lumpsum payment to an contractorer at a time but if the amount during the year at any time goes more than 50000/- then it is complusory to deducted TDS

if payment to/ credit is given to contractor for rs 20000 in one time then tds is deductable . but if the payment in one time is less than 20000 but total payment /credit given to the contractor is rs 50000 in one year then   tax is required to be deducted at source. hence we have to see both the limit for tds. this amount has been changed from the fy 2010-11 to 30000 nad 75000 respectively

Yes... all are right.....

expense booked or payment made in lumpsum of 20k OR  total payment made in excess of 50k during the year....

Agree wid Babit

Dear darsh*ta As per section 194C of IT ACT,1961 for A>Y 2010-11, My Exa. in ref.

No. of Contract   6

Per contract value Rs. 10,000/-

Then TDS not deduct upto Rs. 50,000/- but deduct TDS on entire amount of Rs. 60,000/- at the time of 6th contract payement/credited.

Till FY 2009-10 the TDS limit for Sec. 194C shall be deducted to a specific recipient if payment/ credit to that recipient exceeds Rs.20,000 in a single payments or exceeds Rs.50,000 for the whole year.

From FY 2010-11 the limit is Rs.30,000 in case of single payment to that recipient and Rs.75,000 in case of payment made to recipient for the whole year

Yes, Mr. Muthu is right.

Mr. muthu is totally correct.

But the said limit of 30000 and 75000 is applicable from 1st July, 2010 onwards.

and before that the limit of 20000 and 50000 is applicable.

 

mr.muthu please provide me circular reference for new TDS limit which is mentionedby u.


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