01 July 2013
Sales in individual is Rs. 35,00,000 /-. Loss is Rs. 8,85,000 /-. According to my understanding it is subject to audit u/s 44 AB read with Sec. 44AD i. e. less than 8 % profit for A. Y. 2013 - 2014. If right then will all TDS provision apply ? And if no TDS deducted, should it be disallowed ? Will anyone Kindly clarify ?
01 July 2013
You are completely correct in your view. The firm is subjected to tax audit, IF, you want to carry forward the benefit of tax loss. TDS is dependant on previous year status, if it is liable to be audited under section 44AB. (Only clause (a) & (b) is covered, i.e., 1 crore & 25 lacs limit). If person audited accounts of previous year only due to 44AD, it is not covered in TDS provisions.
01 July 2013
But is it there in Section anywhere that if it is subject to audit u/s 44 AB read with Sec. 44 AD that provision of TDS will not applicable ?
CAclubindia
