16 March 2014
Last year my clients accounts were audited u/s 44AD and not 44AB as turnover was less than 1 cr. whether he is liable to deduct TDS this year.
16 March 2014
no...please not that the TDS becomes applicable only where turnover exceeds the limit prescribed under 44AD ie 25 lakh for professional and 1 cr for business. mere audit under 44ab due to 44ad doesn't result in tds becoming applicable.
16 March 2014
The requirement to deduct TDS, of course, applies to individuals carrying on business or profession if the turnover or gross receipts of the business or profession exceeded the limits applicable for tax audit in the earlier year. These limits are Rs 1cr for businesses, and Rs 25 lakh for professions in the fiscal year Therefore, if you are carrying on a business or profession and were liable to get a tax audit done for the year ended you are required to deduct TDS from all applicable payments, such as interest, rent, professional fees and payment to contractors.
But a audit u/s 44ad does not neccessarily require you to deduct tds.
CAclubindia
