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should the TDS be deduted in this situation?

10 June 2017

should we deduct TDS on payments made to our suppliers if the value of Services+Service Tax was greater than 1Cr but value of Services Alone was less than 1Cr in our preceding Financial year.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185582 Points)
Replied 10 June 2017

Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 (page 40)

"5.9 The term ‘turnover’ for the purposes of this clause may be interpreted to mean the aggregate amount for which sales are effected or services rendered by an enterprise. If sales tax and excise duty are included in the sale price, no adjustment in respect thereof should be made for considering the quantum of turnover. Trade discounts can be deducted from sales but not the commission allowed to third parties. If, however, the Excise duty an / or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover. However, sales of scrap shown separately under the heading ‘miscellaneous income’ will have to be included in turnover."

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