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Whether firm opting 44AD liable for TDS provision?

09 June 2018

In TDS specifically excluded individuals & HUF who not liable for audit u/s 44AB.Firms don't have such exclusions. Firms are liable for audit u/s 44AB & have to deduct and pay TDS, but what treatment about firms opt for 44AD & not liable for audit.

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7 Replies

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 09 June 2018

Despite of being not liable for audit
a firm shall have to deduct tds and pay the same within the prescribed time limits
the exclusion is only for the individual & HUF who are not liable for audit u/s 44AB.

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Mamta Soni (25 Points)
Replied 09 June 2018

can you tell me in which section that specied

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 09 June 2018

Dear Mam,
you need to check the specific section of tds as per your transaction.
as sec 194A, 194C, 194I, 194H specifically excludes individual & HUF who are not liable for are not required to deduct tds
so you need to specifically relate your transaction with the provision of applicable section

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 09 June 2018

Generally, the question of reporting of tax deduction comes only if it's audited u/s 44AB. So, if 44AD is opted, why the burden is to be taken :P Better leave.

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 09 June 2018

But mam even in case of 44AD if you declare your income lower than 8% or 6% as the case may be, you will liable for audit. Hence the provisions of TDS will be applicable
so as i earlier said it depends on the situation

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Mamta Soni (25 Points)
Replied 12 June 2018

thank you both for your valuable suggestions

c jyothi (Student CA IPC / IPCC) (103 Points)
Replied 13 June 2018

In respective section for TDS provision it is mentioned the assessee other than individual and HUF whose books are not subjected to tax audit u/s 44ab are required to deducted the TDS
So all assessee except above mentioned need to deduct TDS as per provision of TDS

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