TDS deduction on contractor payment (194 C)

[Nihal Shaikh]

I Have one Bill of contractor Rs.38,000/- and other bill of 25,000/- Total2 bills till date ₹ 63000/-

In this situation i have to deduct TDS on Bill of ₹ 38000/- only OR On Both Bills i.e. ₹ 63000/- ?

[Ganeshan Kalyani]

if both the bills are from one party then TDS is deductible on 63 thousand. If the bill received is from 2 parties then TDS is deductible on the bill value 38 thousand.

[Nihal Shaikh]

Both Bills from Same Party.

[Ganeshan Kalyani]

Tds is deductible on total amount.

AI Summary

TDS on contractor payments applies to the aggregate payable to the same contractor, otherwise per contractor per bill. TDS on contractor payments is deductible on the aggregated total when multiple bills are issued by the same contractor; if bills are from different contractors, TDS is assessed separately for each payee and computed on the amount payable to that individual contractor.