As my turnover in fy 19-20 is 70 lac and i get my books audited and my turnover in 20-21 is 3 crores So if i made payment to subcontract of rs 300000 so i need to deduct tds on that or not
As tds deduction applicability is on audit or it is on turnover based like 1 cr
5 Replies
rama krishnan
(12239 Points)
Replied 09 February 2022
Irrespective of turnover, you are required to deduct TDS @ 1% or 2% depending upon the nature of payee, when payment made is in excess of 30000 or aggregate of payments exceeds 100000
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 09 February 2022
Individuals & HUFs are not required to deduct Tds in non audit cases .
Tds provisions applicable only if the tax audit is applicable.
Suppose , if you are a common man & making payment to Doctor 100000/- & Lawyer 50000/- etc , there is no need to deduct tax.Every person can't have the TAN &it's not required also
Most of times we pay huge payments to doctors , still it's not required to deduct tax u/s 194J even if it is above 30k
Tds provisions applicable only if the tax audit is applicable.
Suppose , if you are a common man & making payment to Doctor 100000/- & Lawyer 50000/- etc , there is no need to deduct tax.Every person can't have the TAN &it's not required also
Most of times we pay huge payments to doctors , still it's not required to deduct tax u/s 194J even if it is above 30k
rama krishnan
(12239 Points)
Replied 09 February 2022
For professional payments, turnover is to be considered. for contract payments there is no turnover threshold for TDS. Mr. Eswar reddy if you could quote relevant sections, I would feel obliged
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 09 February 2022
Check even 194IB also for clarity..
There are specific provisions for non audit cases.General provisions are not applicable to Individuals & HUFs not liable to tax audit
There are specific provisions for non audit cases.General provisions are not applicable to Individuals & HUFs not liable to tax audit
rama krishnan
(12239 Points)
Replied 09 February 2022
That's what I want stress upon... where there's requirement it has been mentioned in the relevant sections but in respect of contract payments there's no turnover threshold ...if you check the earlier edition of act book, I can see where it has been clearly spelt under section 194c that liability to deduct arises only when the turnover exceeds 1 crore whereas now the same has been removed. it means there's no threshold limit. this is my opinion
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
