Confusion arising under section 44AB VS 44AD
This query is : Resolved
24 November 2022
Dear sir,
My client is engaged in the supply of crane on contractual basis from one place to other not owing any vehicle opted presumptive taxation scheme under section 44AD for the FY 2021-2022 because his turnover is 1,90,00,000/-. But A.O is saying that as his turnover exceed 1 crore he is mendatorily required to Audit under section 44AB of IT ACT,1961 & TDS Provision also applicable.
Please expert resolve my query as soon as possible.
My client is engaged in the supply of crane on contractual basis from one place to other not owing any vehicle opted presumptive taxation scheme under section 44AD for the FY 2021-2022 because his turnover is 1,90,00,000/-. But A.O is saying that as his turnover exceed 1 crore he is mendatorily required to Audit under section 44AB of IT ACT,1961 & TDS Provision also applicable.
Please expert resolve my query as soon as possible.
24 November 2022
For AY 2022-23, an eligible assessee has option to declare eligible business u/s. 44AD, provided the turnover is upto 2 Crs.
As per sec. 44AD, the assessee is not required to maintain books of accounts, and no question of audit u/s 44AB(a), unless specified as under sub- sec. 44AB(e) r.w.s. 44AD(5).
After the amendment in finance act, 2020; all the assessee including the persons declaring income under presumptive assessment are required to deduct TDS, if their income exceeded 1 Cr. in immediate preceding year.
As per sec. 44AD, the assessee is not required to maintain books of accounts, and no question of audit u/s 44AB(a), unless specified as under sub- sec. 44AB(e) r.w.s. 44AD(5).
After the amendment in finance act, 2020; all the assessee including the persons declaring income under presumptive assessment are required to deduct TDS, if their income exceeded 1 Cr. in immediate preceding year.
Message likes :
2 times
24 November 2022
Thank you sir for the reply, my question is whether Section 44AB & TDS Provision is applicable in the above case. As the clients turnover is upto 2 crore and has opted presumptive taxation scheme under section 44AD in all the 3 previous years?
Message likes :
1 times
24 November 2022
I confirm that Audit u/s. 44AB(e) can be applied for default of sec. 44AD(4) & (5), but audit u/s. 44AB(a) cannot apply for assessee declaring income u/s. 44AD of the act.
Yes, now TDS liability u/s. TDS U/s 194C, 194H, 194I, 194J also arises in PY if the business turnover exceeded Rs. 1 cr. in immediate preceding year. However, no disallowance of any expenses due to the default is applicable.
Yes, now TDS liability u/s. TDS U/s 194C, 194H, 194I, 194J also arises in PY if the business turnover exceeded Rs. 1 cr. in immediate preceding year. However, no disallowance of any expenses due to the default is applicable.
Message likes :
1 times
24 November 2022
Thank you sir, as you said all assessee required to deduct TDS if their income exceeded 1 Cr. in immediate preceding year.
Whether it is income or Turnover exceeding 1 crore?
Whether it is income or Turnover exceeding 1 crore?
24 November 2022
Turnover per 194I, 2nd proviso.
Message likes :
1 times
24 November 2022
Kindly refer clause no. 76-79 (page 35 of finance act, 2020 for the amendment in the TDS deduction for individuals & HUF..
https://www.cbic.gov.in/resources//htdocs-cbec/Finance_Bill-2021.pdf
https://www.cbic.gov.in/resources//htdocs-cbec/Finance_Bill-2021.pdf
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
CAclubindia
