Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 Dear Sir,
In f.y. 2011-12, turnover of my one of client was about 25 lacs and in f.y. 2012-13 it has reached to 110 lacs.
In fy. 2012-13 he has paid about 5 lacs to a company for the job work of iron sheet bending by laser machine, of the Iron sheets purchased by my client.
As the above transaction attracts liabilty on my client to deduct tds u/s 194c.

Whether his liability to deduct tds arises from the fy. 2012-13?
or
it arise only from the fy. 2013-14, as fy. 2012-13 was his first audit year.

Please advise me.
Thanks and Regards.

Guest

Guest (Expert)

27 June 2013 As per Section 44 ab, your client is liable for tax audit for the year 12-13.

As in the section , words used are

"carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds [sixty lakh rupees]] in ANY PREVIOUS YEAR"

Any previous year means, in any year.

Once he become liable for tax audit under the act, he also become liable to deduct TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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28 June 2013 As Tax Audit applicable for FY 2012-13, Liability to deduct TDS arises from FY 2013-14 onward (Provided you client is either Individual or HUF).

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2013 In the above case, assessee is going to form a new firm in the proprietorship of his brother, therefore his turnover will reduced below 1 crore in fy 2013-14, and he will opt Section 44AD for the FY 2013-13. Thus whether he gets immunity from geting TAN and deduct tds or not?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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28 June 2013 Please redraft your 2nd query again. Its not quite clear.

Once tax audit applicable in FY 2012-13 TDS has to be deducted from FY 2013-14 onward even if turnover in that FY is below Tax Audit limit.