29 October 2010
Any assessee other then Individual or HUF engaged in the business is liable to deduct TDS from the payment made which are subject to any section in chapter VXII of IT Act. so in case if the assessee in your question is not an Individual of HUF, TDS is required to be deducted from this payment whether turnover exceeds 60 Lac of not.
In case of Individual or HUF, they are under obligation to withhold TDS from the payment made, if their business turnover was subject to tax Audit in the immediately preceding FY. since in this case the business was not in existence, TDS provision shall not apply, if the assessee in question is an Individual / HUF
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