TDS U/s 194c by proprietor

Page no : 2

(Guest)

Originally posted by :Manish
"	whether individual or proprietorship firm is liable to deduct TDS ? if not - ok, but if liable then on which amount and whether liable to payment for any particular expenditure.	"

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girish mangla (practice) (206 Points)
Replied 17 August 2008

Originally posted by :Guest
"	Originally posted by :Manish " whether individual or proprietorship firm is liable to deduct TDS ? if not - ok, but if liable then on which amount and whether liable to payment for any particular expenditure. " Yes , an individual or a proprietorship firm is liable to deduct TDS if it comes under sec44AB of Income Tax Act,1961 i.e. its turnover exceeds 40lacs and comes under audit. it is liable to deduct Tds on every exp. which is liable to TDS.	"

CA SHIV SHANKAR KHUDANIA (Chartered Accountant) (157 Points)
Replied 17 August 2008

Originally posted by :CA Sampat Jain
"	vijay jain Date: Fri Oct 21, 2005 4:57 am Subject: TDS on Proprietorship concern U/S 194 C vijayjainint... Offline Send Email Dear GuysCan any one of you clarify me whether TDS on Contractis applicable to Individual(proprietorship) subject toAudit u/s 44 AB because section does not specifyindividual in the list of assessees enter intocontract with Contractor.For eg. A is a prop. and enter into contract with B(Transporter)- whether this section applies.Further it is specifically stated in section that thissection applies only when there is relationship ofContractor & Subcontractor.Kindly clarifyRegardsVijayR.Singhvi & AssociatesChartered AccountantsF-113, Ground Floor,Central Chambers,2nd Main GandhinagarBangalore-560009Ph : (+91) 080 22281573: (+91) 080 22205587Email : vijayjainintouch @ ...	"

Look practically it is difficult to see agreement of contract between parties but the transaction it self reveals that it should be in the nature of contract. like if a individual paid a sum of Rs. 1.5 lacs as a frieght charges to a party where his tunover is around 1.5 crores then he should deduct TDS on the freight charges with the relevant tax rate.

Prabhash Chandra Jha (TAX CONSULTANT) (48 Points)
Replied 17 August 2008

yes a proprietor(individual)is liable to deduct tds if his turn over is exceed rs4000000. the rate of tds is applicable what whever the rate discribed under deduction and collection of tds

(Guest)

When an advertisisng agency makes a payment to the media it is not subject to TDS. But many a times smaller advertisisng agencies have to ake te help of bigger agencies for releasing their clients advertisements. The client is deducting TDS, but should the middle agency also deduct TDS?. as this would amount to double taxation. The middle agency is HUF, and in adverising only when the gross income is Rs. 40 lacs (not turn over) it is only then subject to Audit. But in case the advetisisng agency has got his accounts audited, (though not required), does the TDS rules apply

Harish Shah

Originally posted by :Manish
"	individuals (proprietorship firms) are not required to deduct TDS u/s 194 C	"

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harish desai (ARTICLE) (21 Points)
Replied 29 March 2011

please give me clarification regarding tds :-

tds is applicable to proprietership firm in first year of commencing business

MOHANASUNDARAM (ENGINEER) (21 Points)
Replied 25 July 2012

Dear all,

I am a civil engineer running a construction company.

I started the concern as a partnership firm on 2008 and having a PAN in the name of concern.

After March'2011 I have changed the constitution of the firm from partnership to propreitorship, but there is no change in the name and style of business(Firm name).Also surrender the existing PAN of concern.

Now I have using my individual PAN for the firm(ie.,Propreitorship).

Then what is the % of TDS for works contract?!

For ur ref:

I know, If the PAN in the name of company.... Ex: ABCD ENGINEERS then TDS is 2%

If the PAN in the name of HUF/Indivi...Ex: ABCDEFGH then TDS is 1%

But my only problem is my billing in the name of ABCD ENGINEERS and my PAN is in the individual name ie., ABCDEFGH(Propreitor),then what is the percentage of TDS ?!