A PROPREITORY CONCERN SALES TURNOVER EXCEEDED ONE CRORE IN FEBRUARY 2016.WILL TDS PROVISIONS APPLY IN THE FIRST YEAR OF AUDIT (in this case A.Y 2016-17)
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 09 February 2016
Not Apply In The Year In Which It Exceed 1 Crore It's Apply In Next Year I.e FY 2016-2017
Hitesh Khanna
(Accounting & Finance Taxation Company Law Audit )
(839 Points)
Replied 09 February 2016
Ruchi
(CA)
(1410 Points)
Replied 09 February 2016
The Act says that the provisions of tds are applicable on individual or HUF whose total sales, turnover or gross receipts from business or profession exceed the monetary limits specified in section 44AB during financial year IMMEDIATELY PRECEDING the financial year in which income is to be credited or paid.......
Hence , the tds provisions are not applicable in the current year. However, you must deduct tds on required expenses/payments from beginning of next year itself whether the turnover exceeds 1 crore during next year or not.
manisha
(cs)
(1118 Points)
Replied 10 February 2016
Ruchi
(CA)
(1410 Points)
Replied 10 February 2016
@ Manish
As the act says.... 'IMMEDIATELY PRECEDING THE FINANCIAL YEAR' hence if next years' turnover or receipts or sales exceed 1 crore then tds should be deducted in the next year of next year otherwise not.
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