ours is a diagnostic centre (propritory concern) & ours is a tax audit case. some of the tests will be done at other diagnostic labs say around Rs.25000/- monthly. my question is whether it attract TDS?
2 Replies
vishal saxena
(student)
(36 Points)
Replied 02 September 2008
| Originally posted by :sreenu | ||
| " | ours is a diagnostic centre (propritory concern). some of the tests will be done at other diagnostic labs say around Rs.25000/- monthly. my question is whether it attract TDS? | " |
hi,this transaction does not attract TDS provisions as you have propritory concern.
As per section 194 of income tax act "Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of -
(a) Fees for professional services, or
(b) Fees for technical services, shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to five per cent of such sum as income-tax on income comprised therein .
yogesh dave
(service)
(376 Points)
Replied 02 September 2008
if in the previous year, the turnover of the proprietory concern exceeds the limit of Rs. 40 Lacs, the Tax audit applies to that assessee and the tds rules applies to that assessee if in next year also the turnover exceeds 40 lacs, if so then it will apply.
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