I am doing a accounts for a proprietorship concern running a trading business of yarn, the concern has received job work bill above50000.00 is the tds appicable.
The point is concern is just started on 01.04.2011 and already cross turnover 60 lacs.
Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.
However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs. 60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.04.2010) in previous year, he is required to deduct tax at source.
So, in the your case no need to deduct tds in first year
CAclubindia
