25 July 2016
We started a partnership firm in Jan 2016. The first three months, we did one project. It was to shoot an event and provide them the video. We didn't maintain any books. So I was thinking of filing under section 44AD. They deducted a TDS of 10%. What should I select nature of business. Since we were just contractors, we hired cameramen etc for the same, I was thinking contractor-others. But they deducted 10% TDS and in case of contractors, TDS should be 2% (or 1%).
So I was wondering what should be the correct step.
25 July 2016
TDS depends upon the safe playing attitude of the person deducting the tax....it should not be taken as conclusive.... From the write up it appears to be a works contract...... so you can opt for 44AD
25 July 2016
Thanks. Does the deductor mention any "code" etc while deducting the TDS? I mean if they deducted it as "professional services", then can Income Tax department raise a query?
CAclubindia
