one of my uncle is running a guest house under his proprietorship concern.They have made a payment for one contractor of RS one lakh without deduction of TDS in F.Y 2016-17. Auditor claims that the TDS should be deducted on such payment.
Their turnover for Fy 2015-16 was 90 lakhs.
whether they required to deduct TDS on such payment???
Hi Ankush,
First of all your auditor such a useless person so change it first.
As per Section 194C of the income tax act, 1961 Every individual or huf who is liable to get his account audited under section 44AB is responsible for getting tan and deduct tds. (For indivial or HUF doing propreitory business the limit was one crore).
Thanks,
Abhishek
CAclubindia
