Let's say the turnover of a firm was 1.5Cr in FY 2014-2015 and the firm started deducting TDS as per law.
But In FY 2015-2016 the turnover drops to 60 Lakh
Is it mandatory for the firm to deduct TDS in FY 2016-2017??
Batla (Consultant) (37 Points)
19 February 2017Let's say the turnover of a firm was 1.5Cr in FY 2014-2015 and the firm started deducting TDS as per law.
But In FY 2015-2016 the turnover drops to 60 Lakh
Is it mandatory for the firm to deduct TDS in FY 2016-2017??
Anil Diwan
(Professional)
(83 Points)
Replied 19 February 2017
As per Income Tax Act’1961 and the Income Tax Rules it is not mandatory file a NIL TDS Return.
A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act’1961 for any quarter.
CA Hariprasad Nayak
(Chartered Accountant)
(221 Points)
Replied 19 February 2017
Rupinder Kaur
(CA Practice)
(89 Points)
Replied 19 February 2017
Anil Diwan
(Professional)
(83 Points)
Replied 19 February 2017
Partnership firm and company is supposed to deduct TDS irrespective of sales turnover.
Following persons are liable to deduct the tax at source:-
A) All Individuals (Including sole-proprietorship concerns) and HUF, who are not covered under tax audit, shall deduct TDS against all the specified payments except:-
B) Individual/HUF who are covered under tax audit, will deduct tax at source on all specified payments.
C) Partnership firms and Companies and persons other than individuals and HUF, will deduct tax at source on all specified payments.
Above explanation will clear all confusion on deduction of TDS..
varsha naik
(Chartered Accountant)
(303 Points)
Replied 24 March 2017
- Partnership Firm liable to deduct TDS irrespective of Turnover limit
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)