as per sec 194c of IT Act, if single bill exceeds Rs.30000 or aggregate amount exceeds Rs.75000 in a financial year, then we have to deduct TDS. my question is if single bill amount is Rs.31000 means on which amount should i deduct TDS? 31000 or 1000?
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SHUSHANT commented about 6 years ago
Dear RAJA, As per Section 194 C of Income Tax Act 1961 You are required to deduct the tds on 31,000/-.
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Dear Raja, Plz Rs. 30000/75000 provided in sec. 194C are not exempted amounts but these are limits to determine point of deduction of TDS. . If a single payment is Rs.31000, then, TDS will be deducted on whole of Rs. 31000 & not only on Rs. 1000.
TDS should be deducted on 31000 @ 2%( or 1% if the party is Individual or HUF). TDS is NOT to be deducted only if the aggregate amount doesn't exceed 75,000 in relevant Financial year and no single bill is of more than Rs 30,000. TDS is to be deducted If the single bill amount is more than Rs 30,000 even though entire years aggregate amount doesn't exceed Rs 75,000 for the relevant FY.
According to 194C TDS on Contractor TDS is to be deducted if the payment is made for a single bill of Rs.30000/= and more (Aggregate Rs 75000/=). So You need to detect on Rs 31000/= @ whatever rate applicable for the Assessee.
Hello, Under 194C TDS on Contractor TDS is to be deducted if the payment is made in single of Rs.30000 or the aggregate payment of Rs.75000 in the financial year. If the single payment exceed Rs.30000 then TDS is to be deducted on whole amount. As per your question full TDS is to be deducted on the Rs.31000 and not on Rs.1000. TDS rate 1 % or 2% or 10 % is to be deducted will depend upon the type of assessee. If Corporate then TDS to be deducted at the rate of 10%. Hope your doubts are clear
The limit to decide the liability to deduct TDS u/s 194 C is Rs 30,000/- in case of single payment and Rs 75000/- for aggregate payment during the financial year . This limit is to just to check whether tds will be deductible or not , the applicability has been decided the tds will be deducted on the whole of the payment amount , which in your case is Rs 31000/-. **Therefore if the single bill amount is Rs 31000/- , TDS shall be deducted on Rs 31000/- and not on Rs 1000/-**
**TDS Contractor-194C** As per Section-194C If any person making any payment for the works contract then the TDS needs to be deducted only if the amount of payment exceeds Rs.30,000/-. Therefore the limit of Rs.30,000/- is not for the purpose to determine the taxable amount rather it is to determine the applicability of Sec-194C. Therefore if the payment or the bill amount exceeds Rs.30,000/-, the person became liable to deduct TDS. However TDS is required to be deducted on the whole amount paid or payable for the works contract i.e. in your case on Rs.31,000/-.