my clients tournover is not exceeding the audit limit but it may or may not exceed at the end of the year.
i want to know that whether he is liable to deduct the TDS or not because right now its tournover is not exceeding 1cr but it may or may not exceed 1 cr at the end of year.
18 October 2012
TDS provisions will applicable once you paid any sum to anyone provided that payment type should be come under payment type discribed in TDS related law (192,193,194,195 etc..) and whenever threshold limit will be crossed, you have to deduct TDS or otherwise Govt is levied penalty.
For this you have to apply for the TAN registration, if not having and deduct the TDS Wherever it is applicable by law.
18 October 2012
But my client is individual and the payment is contractual payment and he is liable to deduct the tds only when he comes under tax audit.
when he is not comming under audit tds provision is not applicable to him.
but in my case it is not determinable that he will come under udit or not.
18 October 2012
But my client is individual and the payment is contractual payment and he is liable to deduct the tds only when he comes under tax audit.
when he is not comming under audit tds provision is not applicable to him.
but in my case it is not determinable that he will come under audit or not.
18 October 2012
Mr. CA Sambhu For the purpose of Individuals/Huf is liable to deduct TDS only if their sales or gross receipts or turnover exceeds the limits prescribed u/s44AB in the immediately preceding financial year. Thus if your previous year turnover doesn't exceeded the 44AB turnover then you need not to deduct in this year as well as if you turnover for this year exceeded the 44AB turnover then you have to deduct in the next year only not liable for this year i.e turnover exceeded 44AB limit year.
But however this provision doesn't apply for some types of payments and making TDS. I.e the above provision applicable for TDS deduction according to the sections 194A,194C,194H,194I & 194J only for all other cases i.e TDS would be deducted other than these sections then you have to deduct TDS irrespective of turnover.
CAclubindia
