tds

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Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2010 Are TDS Provisions applicable for first year of audit?

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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30 November 2010 Yes.

It is not concerned on how many years of establishment.

Once the payment exceeds the prescribed limit as per the respective sec, the provisions of TDS apply.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 November 2010 Where the payer is an individual or HUF whose accounts are required to be audited as per the provisions of section 44AB of the Act for the immediately preceding financial year, he has to deduct tax at source.

If your accounts are subject to tax audit for the assessment year 2009-10 under section 44 AB of the Income-tax Act, 1961, your are liabile to deduct TDS on your payment for the assessment year 2010-11.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 November 2010 @ Madhusudan Sir

"Once the payment exceeds the prescribed limit as per the respective sec, the provisions of TDS apply."
TDS is not required to be deducted even if the threshold limit is crossed in case of Individual/ HUF deductor who is not subject to Tax Audit.

CA PAWAN SETHI

CA PAWAN SETHI (Expert)
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30 November 2010 agreed with sanjay sir

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 November 2010 Whereas the answer given by Madhusudan for companies & firms is correct whereas answer given by Sanjay for Individuals & HUFS is correct.