Tds deduction applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 Dear Experts.
our proprietary firm was conmenced in may 2017 as of now turnover is 6 Lacs However payment of 40000 is to be made to contractor. as per sec 194C if single payment is exceed 30000 TDS will be deduct. plz clarify whether we need to deduct 1% TDS on the payment of 40000 or not.

Thanks
Arjun

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 June 2017 No need of TDS being individual not covered under tax audit.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 sir in which sec circular it is stated that individual who is not cover under tax audit will not be liable to deduct TDS

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 June 2017 Refer sec 194C.................................

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 ok.. sir a frined of mine being proprietary firm in FY 2016-17 His turnover is Approx. 1.5 crore Tax audit is applicable but he has opt sec 44AD Hence audit will not be done. pls clarify in this scenario In FY 2017-18 Whether He is liable to deduct TDS if payment is exceeding threshold.

CA Mohit Kumar

CA Mohit Kumar (Expert)
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24 June 2017 no, as 44 AD assessee is not liabl

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2017 but sir... if an individual is in audit with having turnover 59 Lacs and Net profit 5.78%

even this scenario He is under tax audit so why he is not liable to deduct TDS

pls clarify....

RAJA P M

RAJA P M (Expert)
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26 June 2017 Tax audit is not a matter. If your contractors bills above 30000/per bill or above 100000/annum you go to deduct TDS 2%. and ll be consult your CA/Consultant.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 June 2017 For TDS by individuals Tax audit matters. TDS provision not applicable in case of Tax audit consequential of declaring lower profit. TDS provision not applicable in this case despite tax audit in view of lower turnover.

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2017 sir... if individual is not liable to Deduct TDS due to non Audited. but if he pay the salary exceeding 250000 Then Whether he will be liable to Deduct TDS under 192 irrespective of tax audit. because this exemption is applicable to all the sections except 192B.

pls clarify is it correct.....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 June 2017 Yes you are right he will be liable to Deduct TDS under 192 irrespective of tax audit.