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if there is no express contract between parties,but makes
no. of payments to a particular party and those payments
exceeds the limits prescribed(i.e 20000 or 50000 as the
case may be)is tds applicable for the same?



if there is no express contract between parties,but makes no. of payments to a particular party an..

Answer / h.r. sreepada bhagi

Whether there is a contract or not, if the total amount paid
or credited (or expected to be paid or credited) to a vendor
during a financial year is more than Rs. 20000/- in one bill
or total Rs. 50000/- in a year, Tax needs to be deducted at
source and remitted to the government. In other words,
existence of a contract is not necessary to apply TDS (In
this case the expense/payment should be in such a nature to
be covered under Section 194C of the Income Tax Act, 1961
(India).

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