Applicability of Section 194M - Income Tax

A salaried person enters into contract for construction of his residence. The contract amount is Rs.1,10,00,000/- The contractor gives running bills. During Account year 2022 23, he has given bills aggregating to 40,00,000/- lakhs and during 2023 -24 he has given bills aggregating to 70,00,000/- lakhs. Payments are made immediately. In my opnion, no tax needs to be deducted during 2022 -23 since the amounts Paid during the year is below 50,00,000/- lakhs and TDS u/s 194M is to be done only on whole of 70,00,000/- lakhs paid during 2023 -24. Is my view correct since u/s 194M lays emphasis on amount paid and not the contract amount. ( Q 1 ) While reporting TDS in Form No.26QD, we have to mention the total value of contract, which is Rs. 1,10,00,000/- in the given case while TDS is done only on 70,00,000/- lakhs. This may tigger some notice from department for short deduction. Section 194M provides for TDS to be done at the time of credit or payment whichever is earlier. Section 194M covers only non business entities. In the light of above, it is not clear how and when TDS can be demanded on the basis of Provision ( Q2 ) In a situation where the contractor gives bill for certain amount, say on 25 March 2023 but payment is made only on 4 April 2023 is TDS to be done and reported for AY 2023 -24 or 2024 -25. ( Q3 )