TDS liability

This query is : Resolved

Dhanraj (Querist)
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06 September 2009 Respected experts

A proprietor is for the first time under tax audit for FY 2008-09. He has paid commission amounting to Rs. 8500 during the year. He is not liable to deduct TDS u/s 194H. Am I right? Please tell.

Thanks

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 September 2009 He is liable ot deduct TDS on brokerage paid above Rs. 2500/- to any person during the year.
So u r wrong and TDS Liable u/s 194H

Jitender

Jitender (Expert)
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06 September 2009 as he is an individual tehrefore, he is liable to deduct TDS only he is liable for Tax audit in last year. therefore, u r right.

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CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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06 September 2009 You r right. he is not liable to deduct Tds because proprietor is for first time in tax audit.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 September 2009 Since he is under audit last year then he is liable for deduction of tax w. e. f. 1.04.2009. I dont know how the others are interpreting the same.