I am induvidual mannufacturer of PVC bags. My turnover is below 40,00,000/-. Can any body tell me whether i am liable to Deduct TDS on Contractor u/s 194C. Please clearirfy. I am totally confused.
07 February 2011
In the immediately preceding financial year if your turnover crosses Rs.40 lakhs ,you are liable to deduct tax u/s 194C, otherwise not.
07 February 2011
Agreed with Mr. Warrier, in the current year you are not liable to deduct TDS.
If the tax audit provisions were not applicable to you in the previous year too, then no need to deduct TDS. But if it was applicable to you in the previous year, then TDS will have to be deducted in the current year, even if your this year's turnover is lees than the tax audit limit.
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