23 July 2014
sir, the turnover of my client which is a proprietorship firm during F.Y.2013-14 was rs. 80,00,000 and profit margin was only 2%. therefore provision of sec. 44AD is attract and he is liable to get audited u/s 44AB. He pay rs. 50,000 of shop rent.
my question is that he is liable to deduct TDS during f.y. 2014-15 on making payment of shop rent.???
but on the other hand provision of sec. 194I says that a person lialble to deduct TDS only when his turnover was over 1 crore.
sir i am totally confused. please give your suggestion.
24 July 2014
no. audit because of lesser profit under 44AD wont mean that you need to comply to TDS regulations. that will happen only when turnover crosses 44AB limits
CAclubindia
