is tds provisions are applicable in year mar 18
if assessee declared profit less then 8% due to this he got his accounts audited for mar 2017
in both f.year his turnover is lesa then 1 crore
5 Replies
Deepak Gupta
(CA Student)
(15922 Points)
Replied 12 September 2018
Not Applicable.
For example, as per proviso to sec. 194A(1), an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.
From the above it means that, an individual is exempted from deducting TDS under section 194A, if tax audit was not applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited.
But, such tax audit shall be as per clause (a) and (b) of sec. 44AB which covers tax audit where turnover or gross receipts exceeds the specified threshold whereas tax audit by virtue of sec. 44AD is carried out under clause (d) of sec. 44AB.
Hence, TDS provisions shall not be applicable.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 12 September 2018
Read the second para as below... the reply will be more clear... above one may create confusion... tried to modify the same... but wasn't able to do so... so kindly bear with it... rest remains the same...
Not Applicable.
For example, as per proviso to sec. 194A(1), an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.
From the above it means that, an individual should deduct TDS under section 194A, if tax audit was applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited.
But, such tax audit shall be as per clause (a) and (b) of sec. 44AB which covers tax audit where turnover or gross receipts exceeds the specified threshold whereas tax audit by virtue of sec. 44AD is carried out under clause (d) of sec. 44AB.
Hence, TDS provisions shall not be applicable.
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