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Tds

bhagyalakshmi (learner) (141 Points)

11 January 2010

Is there any provision as such that TDS is exempted for the first accounting year?????

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CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 11 January 2010

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Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Bhagyalaxmi,

In case of Individual / HUF, TDS provisions r applicable for the year next following the year in which limits specified u/s44AB exceeds..(Following the year of TAX audit)

In this case In case of first year of Business we can say that TDS is not applicable on Individualsand HUF's

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bhagyalakshmi (learner) (141 Points)
Replied 12 January 2010

Hey Amir

Is there any Sec specified for that provision...

Reply as early as possible

Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Bhagyalakshmi,

there is no separate section for this but this thing is provided by way of Proviso in every TDS Section like 194 C, 194H, 194J,etc

Abinaya M (articled assistant) (51 Points)
Replied 12 January 2010

hi friends....

does tds on contract apply for a contract that is not wrtten and agreed between the parties.

eg: there is no written contract between two parties but the payment exceeds Rs.20,000/-

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Amir (Learner) (4016 Points)
Replied 12 January 2010

Hi Abhinaya,

Yes TDS is attracted even if contract is verbal...No requirement that contract has to be in writing...

Abinaya M (articled assistant) (51 Points)
Replied 12 January 2010

thanks a lot amir.......

have a great day.

Abinaya M (articled assistant) (51 Points)
Replied 12 January 2010

will commission paid to travel agents for the service of booking tickets attract tds as tds for brokerage and commission

Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Abinaya,

Payments to airlines/travel agents - The provisions of section 194C do not apply to the payments made to the airlines or the travel agents for purchase of tickets for air travel of individuals. The provisions shall however apply when payments are made for chartering an aircraft for carriage of passengers or goods. This clarification will apply mutatis mutandis to the tickets for travel of individual by any other mode of transport also—Circular : No. 713, dated 2-8-1995.

The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provisions of section 194C shall however apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C—Circular : No. 715, dated 8-8-1995.