13 September 2016
I have started business of trading this year in my individual capacity. Turnover of my business yesterday exceeded Rs. 2 crores. My questions are ( 1 ) Is provision of TDS applicable in the first year only ? or exempt from TDS ( 2 ) Should I take TAN number for TDS ?? Since this month, I am going to give interest to my individual party Rs. 50,000 /. Should I take TAN number & deduct TDS ? Thanks in advance
13 September 2016
In the case of individual/proprietary business, TAN is mandatory required, if it's books of accounts are required to get audited in last previous year - So, there is no need to take TAN & to deduct TDS in this year. You need to take TAN & to deduct & deposit TDS from next year. For further clarification, you may write us to info@wealth4india.com or Logon to www.wealth4india.com
18 September 2016
It means that one has not to deduct TDS in first year in which turnover exceeded limit of Sec. 44AB but has to deduct from second year. First year interest parties or professional or Commission TDS have not to be subject to TDS. Forget about TDS in first year. Just take TAN in first year & deduct TDS from second year in which interest or other expenses liable to TDS of second year of second year even if turnover is say 50 lakh. Is it correct ? Has I understand correctly ??? In second year parties of interest or commission are different one.
18 September 2016
In fact, you need not to take TAN also in first year. Since requirement of TDS deduction start from second year, so you will have to take TAN in second year & to deduct also from second year.
Further, second year turnover is relevant for applicability of TDS in third year, no relevancy for second year applicability.
Hope, your concern is clear now.
For further clarification, you may write us to info@wealth4india.com or Logon to www.wealth4india.com (Online Tax Studio & Start-up Gateway)
CAclubindia
