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TDS

annasrikanth (student) (202 Points)

03 November 2009

Can a Proprietor whose firm is Audited u/s 44 AB can deduct TDS..... & can a Partnership Firm which is Non Audit can Deduct TDS... Plz Reply Who are liable to deduct TDS..

When can Proprietor & a Partnership firm Can deduct TDS....Thanks in advance

Another One :

If Audited Firm didn’t deducted TDS , Is Nil Return of E TDS is Mandatory

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9 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 03 November 2009

every one has to deduct tds.whether firm whose accounts audited u/s 44 AB and Firms not covered under 44 AB. even Individiuals who do business is also laible to deduct TDS as a service receiver .Only Exception is Individual not doing business and receives services need not deduct tax at source

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CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 03 November 2009

Agreed with SIVARAM....

A firm, whether an audit case or not, has to deduct TDS.... and this applies to an individual tooo...

annasrikanth (student) (202 Points)
Replied 03 November 2009

Thanks for Replies., than if a Firm or a Proprietor deduct Tds .. whether they are liable for E Tds Filing.. Is E TDS is mandatory.. Reply

CA Lovenish Bansal (JOB) (343 Points)
Replied 03 November 2009

Individual or HUF is not required to deduct TDS if they are not lible for Tax audit u/s 44AB

Thanks

Lovenish Bansal

Sunil (Trader) (2611 Points)
Replied 03 November 2009

Individual and HUF incl their Proprietorship not having Audit U/s 44AB in the preceding year do not have to deduct TDS. In the current year, they start deducting only after they cross the turnover / receipts for 44AB Audit. This is for Section 194A, 194C, 194H, 194I, 194J. However even if audited they are not to deduct TDS for payments exclusively for personal expenses u/s 194C and 194J.

Whether audited or not, individuals and HUF have to deduct TDS u/s 192 for salaries and 195 for payments to non-residents. Certain personal foreign exchange remittances are excluded from TDS u/s 195 as specified by RBI and as provided in relevant clauses of DTAAs with other contracting states.

I suggest you keep a printout of the above 2 paragraphs handy so that you do not go wrong.

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Dilip Wankhede (A/c Manager) (63 Points)
Replied 04 November 2009

Agreed with Sunil.

Individual & HUF incl their Proprietorship not having business under Audit U/s 44AB then do not have to deduct TDS.

Chirag Gogri (Ca) (76 Points)
Replied 28 November 2009

No propertory concern and patnership firm are not required to deduct TDs... Because in indian law it is assumed that they should or not required to know law. but if they are under audit they have to deduct Tds ........ Refer sec.190