CA Siddhi (PRACTICE) (257 Points)
28 February 2014I have a client to whom tax audit was applicable till 2011-12. Last year he was not liable for tax audit and yet he had deducted TDS. Whether this year TDS needs to be deducted or he is not suppose to deduct TDS. Kindly provide me referance for same.
Pradeep Gupta
(Accounts Manager)
(298 Points)
Replied 28 February 2014
As per Sec. 44AB, every person carrying on business or profession and his turnover/gross receipts in case of business or gross receipts in case of profession exceeds/exceeding Rs. 1 Crore or Rs.25 Lacs respectively in FY 2012-13/AY 2013-14, will get his accounts audited by accountant.
If a person is liable to get his books of accounts audited in the previous financial year, then in current year he is liable to deduct tds.
NOTE: Eventhough if a person is not liable to tax audit in previous year, he is liable to deduct TDS in 2 cases:
On payment of Salary u/s 192B and
Payment to Non-Resident u/s 195.
https://groups.google.com/forum/#!topic/forum4ca/Xex5ag_6eko
CA Siddhi
(PRACTICE)
(257 Points)
Replied 03 March 2014
In this year one year has already been lapsed i.e. he was not under audit and he had deducted TDS. So in current year he does not have to deduct TDS?
Pradeep Gupta
(Accounts Manager)
(298 Points)
Replied 04 March 2014
No need to deduct TDS except U/s 192 B & 195.
CAclubindia
