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Tds on audit u/s 44ad

Sachin kumar (CA Final) (63 Points)

02 October 2011

Whether an assesee required to conduct audit u/s 44AD, 44AE needs to deduct tds i.e whether tds provisions apply on this type of audit as it is also covered u/s 44AB clause c.

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4 Replies

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 02 October 2011

TAX AUDIT U/S 44AB, IS REQUIRED WHEN ASSESSEE SHOW HIS INCOME BELOW THAN PRESUMPTIVE INCOME...FOR SEC 44AD,44AE,44AF......

Sole Properietory Firms are not required to deduct TDS in the current FY, if they were not liable to get the Tax Audit done in the immediately preceding year.

But the above principle does not apply if payments are made to

1) Residents u/s 194C as contract payments- in such case TDS is required to be deducted even if Tax audit was not required in the preceding year, provided the payment is made for services used in the business / profession.

2) Non-resident i:e in that case TDS is required to be deducted even if Tax audit was not required in the preceding year. In this case whether or not services are used in business/professsion.

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CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 02 October 2011

TAX AUDIT U/S 44AB, IS REQUIRED WHEN ASSESSEE SHOW HIS INCOME BELOW THAN PRESUMPTIVE INCOME...FOR SEC 44AD,44AE,44AF......

Sole Properietory Firms are not required to deduct TDS in the current FY, if they were not liable to get the Tax Audit done in the immediately preceding year.

But the above principle does not apply if payments are made to

2) Non-resident i:e in that case TDS is required to be deducted even if Tax audit was not required in the preceding year. In this case whether or not services are used in business/professsion.