My turnover is below 1 cr. And i never crossed 1 cr. Limit in any previous f.y.
Now i am paying rs. 21000/- to transport for freight charges for a single bilty .
I am lible to deduct TDS???
I Think TDS is not applicable for me as my turnover ia below 1cr. But i need a clarification.
Expert pls reply.
TDS not deductible.
An individual is exempted from deducting TDS u/s 194C, if tax audit was not applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited. [Explanation(i)(l)(B) to sec. 194C(7)]
Further, as per sec. 194C(6), TDS is not deductible on freight charges, provided the mentioned conditions are fulfilled.
"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum."
If in the last year your books of accounts does not get tax audited than you will be not liable to deduct TDS
Year by year book of account finalising by tax audit only. But the point is... Sale never exceed rs. 1cr in any previous years So i think tds not applicable in any case.
Am i right?
If tax audit done last year than you will be liable to deduct TDS
Okay TYSM for quick replies.
Dear Praveen Ji, kindly consult another CA
CAclubindia
