Please tell me how can I ,prima facie, figure out by watching expenditure that tds liability must be there. For instance any labour charges or repair and maintenance, though the limit is there 30000/75000 as the case may be, how can I assume it will be cover under contract or not just by seeing expenditure in debit side.
15 November 2013
see some expenses you would able to figure out easily. For eg if rent is more than 15000 per month, so you know 194-I must apply. But in cases of contracts etc it is always required that a proper scrutiny is done. A cursory look may not be sufficient.
See, some time expenditure of such type you can't figure out wheather it is covered in contract or not, you have to talk to concern accountant for the same. Our senior don't even ask with the accountant and gave their opinion and correctly.I always have a question in my mind. Yeah, some expenditure, Per se, make our focus on the respective section of tds like rent , professional charges, interest etc.
15 November 2013
See as you grow if profession, you learn and your professional judgment improves.
During the initial days, you have to spend more and more time to do actual verification instead of going for judgment calls. More the time you spend now more knowledge and expertise you shall gain and after some time you might also reach the stage where you won't need to ask for clarifications from the client's accountants. this applies not only TDS but to all tax/audit/legal issues.
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