TDS section 194c

TDS section 194c

We are an Individual proprietorship firm engaged in eCommerce exports from India on Amazon.com etc. We are covered under presumptive taxation u/s 44AD (Turnover approximately Rs. 1.6 cr. in the current as well as previous year (FY 2019-20) and hence our books of account are not required to be audited.

During the FY 20-21, we have accounted some 25 invoices (2-3 invoices per month) of courier charges and made payments to the Courier Company aggregating Rs. 24 lacs approximately.

We have not deducted the Tax (TDS) on the above payments until now. We have been recently advised by our Accountant that with the Amendment in Finance Bill 2020, provisions of TDS U/s 194C is applicable to us and we are liable to deduct and pay tax on the above payments.

We want to understand the consequences (penalty/interest etc.) of non-compliance as above and how we can fix the above issue and make the TDS payment to the Govt now.

Asked 4 years ago in Income Tax

Yes you are liable to deduct tds. You can file the tds returns for 2020-21 till 31.03.2021. If you pay the tax now then you are only liable to pay tax and interest. Previously there was a requirement of audit in case of individuals now it is removed.

You are not liable to deduct TDS as the limit of turnover has been increased to Rs.5 cr from 01.04.2020 if the aggregate cash receipts is upto 5% of total receipts and aggregate of cash payments is upto 5% of total payments.

For detailed discussion, please take phone consultation.

Ignore my second reply. My first reply is correct. For TDS deduction u/s 194c, limit is 1 cr.

Vivek Kumar Arora

CA, Delhi

5006 Answers

1133 Consultations

Talk to Vivek Kumar Arora

Yes, TDS was required to be deducted. It is advisable to get a TAN and complete the compliance. Under TDS provisions, late fees is applicable on a per day basis.

Interest would be applicable at 1% per month for late deduction of TDS.

Lakshita Bhandari

CA, Mumbai

5687 Answers

942 Consultations

Talk to Lakshita Bhandari

Dear Sir,

Hope you are doing well !!

Yes, you are liable to deduct to deduct tds on the same.

Interest will be levied at 1% for every month or part of a month for delay in deduction of tax and at 1.5% for every month or part of a month for delay in remittance of tax after deduction.

It is advisable to get the TAN and do the compliances.

We may assist you in entire procedure.