NAGESWARAN (ACCOUNTANT) (834 Points)
26 July 2019One assessee business is coaching centre. Not a tax audit case as his turnover is below 40 lacs.
But he paid salary to his staff 40k per month per employee. Is there any problem as he was not deducted TDS on salary
Thanks..
CA ABHAY GUPTA
(Practice)
(3230 Points)
Replied 26 July 2019
NAGESWARAN
(ACCOUNTANT)
(834 Points)
Replied 26 July 2019
Divakar
(Student CA Final )
(11857 Points)
Replied 26 July 2019
CA ABHAY GUPTA
(Practice)
(3230 Points)
Replied 26 July 2019
Divakar
(Student CA Final )
(11857 Points)
Replied 27 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 27 July 2019
1. Sec 44AD assessee is not required to maintain books of accounts u/s 44AA and thus it would be unfair from the assessee point of view to expect to deduct TDS u/s 192 when in fact he had not maintained any books of accounts.
2. Unlike in sec 194-C where it was clearly mentioned that for the person who is not required to carry on tax audit u/s 44AB is not required to deduct TDS u/s 194C, but there is no express provision u/s 192 as such.
3. Sec 44AD had mentioned sec 30 to 38 alone to be allowed as deduction and disallowance u/s 40(a)(ia) was not covered under the same, an angle could be taken that disallowance u/s 40(a)(ia) could have been made if he had not deducted the same.
4. However in the case of I.T.O. Vs Mark Construction (ITAT Kolkata) the doubt was cleared by ITAT that there is no disallowance u/s 40(a)(ia) in case if a person had opted for presumptive taxation u/s 44AD.
5. Based on the above analysis, disallowance u/s 40(a)(ia) will not be attracted for non-deduction of TDS, if he had opted for presumptive taxation scheme u/s 44AD.
Please correct me if the above interpretation has an alternative view.
AMIT DANG
(TAX CONSULTANT )
(82 Points)
Replied 28 July 2019
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