sreenu (accountant) (72 Points)
29 August 2008
Ours is a proprietory concern. Our proprietor issued Rs.2.5 lakhs cheques from his personal bank account to carpentor for making interors(with material) to his flat. Can this Rs.2.5 lakhs is liable to TDS? (i.e., on material cost & labour cost). kindly solve my query.
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 29 August 2008
It Will Be Credited In Capital A/c.
On Labour Element TDS is to be Deducted if payment of that element <=
20000
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 30 August 2008
| Originally posted by :sreenu | ||
| " | Ours is a proprietory concern. Our proprietor issued Rs.2.5 lakhs cheques from his personal bank account to carpentor for making interors(with material) to his flat. Can this Rs.2.5 lakhs is liable to TDS? (i.e., on material cost & labour cost). kindly solve my query. |
" |
with effect from 01.06.2008 any individual or HUF or an Association of Person/ Body of Individuals, whether incorporated or not whose books of accounts are required to be audited u/s 44AB(a)/(b) during the immediately preceding F.Y. is required to deduct tax on source if payment is being made to a resident contractor and the single amount paid or credited to his account exceeds Rs. 20,000/- and the aggregate of the sums credited or paid during the F.Y. exceeds Rs. 50,000/- and the rates of TDS on such payments are 1.03%, 1.133%, 2.06%, 2.266% according to the category/status of person receiving the payment.
in ur case if proprietor (individual) is not required to audit his books of a/cs as specified under d act then he is not liable to deduct tax at source. otherwise provision of sec. 194C will be applicable to him.
sridhar jorapur
(Articleship)
(41 Points)
Replied 01 September 2008
if the payer is an individual or HUF irrespective of applicability of tax audit is not liable to deduct tax audit all other assessees are applicable to deduct TDS if the payments exceed the statutory limits of 20000 in single payment or 50000 in an year
Sridhar
NIKUNJ RATHI
(C.A)
(56 Points)
Replied 01 September 2008
The answer of Mr. Naveen Kumar Agrawal is right.
First of all please check whether You were required to get Your accounts audited under Section 44 AB of the Income Tax Act, 1961 in the Assessment year 2008-09. If the answer is no, then you are not required to deduct tax at source.
If Yes , then You are required to deduct tax at source at the rates depending on the status of the carpentar.
CAclubindia
