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Tds applicability ???

Praveen Jain (Accounts Manager) (123 Points)

15 September 2017

My turnover is below 1 cr. And i never crossed 1 cr. Limit in any previous f.y.

Now i am paying rs. 21000/- to transport for freight charges for a single bilty .

I am lible to deduct TDS???

I Think TDS is not applicable for me as my turnover ia below 1cr. But i need a clarification.

Expert pls reply.

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17 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 15 September 2017

TDS not deductible.

An individual is exempted from deducting TDS u/s 194C, if tax audit was not applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited. [Explanation(i)(l)(B) to sec. 194C(7)]

Further, as per sec. 194C(6), TDS is not deductible on freight charges, provided the mentioned conditions are fulfilled.

"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum."

2 Like

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 15 September 2017

If in the last year your books of accounts does not get tax audited than you will be not liable to deduct TDS

Praveen Jain (Accounts Manager) (123 Points)
Replied 15 September 2017

Year by year book of account finalising by tax audit only. But the point is... Sale never exceed rs. 1cr in any previous years So i think tds not applicable in any case.

Am i right?

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 15 September 2017

If tax audit done last year than you will be liable to deduct TDS

Praveen Jain (Accounts Manager) (123 Points)
Replied 15 September 2017

Okay TYSM for quick replies.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 September 2017

Yes. If your books of accounts audited in PY then you ll be deduct TDS....

Mubarak R momin (CMA) (145 Points)
Replied 15 September 2017

but if transporter owns less than 10 trucks and file declaration then u need not to deduct the same

Praveen Jain (Accounts Manager) (123 Points)
Replied 15 September 2017

I dont have TAN no.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 September 2017

@ Praveen.,
In case the law is applicable for you. Then no more reasons accepted. Apply a TAN and deduct/Collect taxes....

Praveen Jain (Accounts Manager) (123 Points)
Replied 16 September 2017

Today i consult with my Auditor . He clearly mention that if your turnover not crossed 1cr. in P.Y. then you are not liable to deduct the TDS even your books of account getting audit.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 16 September 2017

You see the same in above....

Praveen Jain (Accounts Manager) (123 Points)
Replied 16 September 2017

Raja sir my company turnover never crossed 1cr. In any previous year but book of account getting audit every year. So my auditor told me when your turnover cross 1cr. Then only you will be liable to Deduct TDS.