TDS on Contracts and Subcontracts

[guna ch]

Dear Sir/s

On which amount TDS should be deductable in the case of Lumpsum amount

If single payment is  Rs. 30,000/- then 29700+TDS is 300

In the case of Lumsum amount on which bill we would deduct tds

for example In April-12     Rs. 15,000/-

                           May-12     Rs.   25,000/-

                           June-12    Rs.  15,000/-

                          August-12 Rs.   10,000/-

                          Nov-12       Rs.   18,000/-

                        Total              Rs.   83,000/-

My doubt is shall i Deduct tds on Rs. 83,000/- or on last bill Nov-12 Rs. 18,000/- or  difference amount after exceeding cut off amount ,on Rs. 8,000 (83,000-75,000=8,000)

 

If I Pay TDS on 83,000/- , Shall i calculate interest for every bill up to last bill. Kindly advise me

[manoj kumar]

Under TDS is not to be deducted in case amount do not exceed following limit:

1.Rs.30000 - In case of single Payment

2.Rs.70000 - In case of multiple amounts during the year.

So,In the given example TDS shall be deducted on last payment as earlier payments are not exceeding Rs.30000 or Rs. 70000.

 if from contract,it is clearly visible that amount can exceed Rs. 70000,then TDS should be deducted from first payment

AI Summary

TDS on contract payments: deduct when aggregate payments exceed threshold; if contract shows excess, deduct from first payment. TDS on lump-sum contracts depends on prescribed thresholds for single and aggregate annual payments: no TDS is deducted while instalments keep the running total below the threshold, and TDS is deducted when a payment causes the aggregate to exceed the threshold; if the contract clearly shows the total will exceed the threshold, TDS must be deducted from the first payment.