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Tds if turnover above 1crore

11 January 2017

hello friends m new to this forum
i have a jewellery business since 10 years.
this FY 2016-17 year my turover will b crossing 1 crore

1. do i have to take a TDS number is TDS aplicable i dont have a TDS number
2. is audit required as i have heard that audit limit has been raise to 2 crore.

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12 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 11 January 2017

1. TDS shall be applicable from next financial year, provided you come under tax audit as per section 44AB, for current year.

2. Turnover limit for tax audit has been raised only if you opt for section 44AD, otherwise in normal circumstances it is 1 Cr. only.

Vaibhav (Complaince of accounts and finance) (150 Points)
Replied 11 January 2017

you must have to apply for TAN no and deduct tds and file return as per rules.

sagar (artice) (59 Points)
Replied 11 January 2017

Yes, as Dhirajlal said all is correct and you have to opt for TAN no. but remember one thing that only you have TAN doesn't mean you have to deduct TDS it will be in your favour to apply as early as possible for TAN so that when any transaction take place you can deduct TDS. and avoid hardship both side by you and client

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Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 11 January 2017

I am agree with Mr. Rambhai Ji and also attract Central Excise Registration in this case otherwise facing huge problems in tis regard.

Vishal Gupta (6 Points)
Replied 13 January 2017

thnx

but is total turnover in a business is related to TDS

is there any rule that one has to apply for TAN if the total turnover exceeds 1 cr.

m saying turnover not INCOME

Candidate Master (Software developer) (23 Points)
Replied 30 June 2017

Sir, so if a person have turover of more than 1 crore and he files under section 44ad then do not have to deduct TDS?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 30 June 2017

@ Vishal: TDS is indirectly related to Turnover. Once your turnover exceeds the specified limit as per Section 44AB.......... Tax audit becomes mandatory.

Now as per different sections (other than salary, where it is otherwise) under which TDS is required to be deducted......... there is sub-clause which states individuals/huf having tax audit u/s 44AB in preceeding year......... the section gets appicable.......

Thus TDS gets related to turnover...

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 30 June 2017

Originally posted by : Candidate Master
	Sir, so if a person have turover of more than 1 crore and he files under section 44ad then do not have to deduct TDS?

When return filed u/s. 44AD, tax audit is not required u/s.44AB.... Right?

When section 44AB not attracted........ .. in next Financial Year, related TDS provisions also not attracted.......

Candidate Master (Software developer) (23 Points)
Replied 30 June 2017

Awesome, so I do not have deduct any TDS?

Raman Singla (Accounts Services) (167 Points)
Replied 08 March 2019

Sale above one crore , business of Saw Mill (Wood)....is obtaining TAN mandatory....????

Obtaining material against 27C, No Salary, Rent and Interest element

Audit will be done under 44AB

CA. Dheeraj jain (propriter) (37 Points)
Replied 20 May 2019

RESPECTED SIR,

I have a doubt about tds applicability section.. turnover is 1 cr. 25 lakh in FY 2017-18 but return file under section 44 AD. salary paid to employee is 5 lakh rs, soo tds on salary related provison are applicable or not?

and please clear below mention provision

refer provisions of TDS, [Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.]

Thanks and Regared

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 21 May 2019

I have a doubt about tds applicability section.. turnover is 1 cr. 25 lakh in FY 2017-18 but return file under section 44 AD. salary paid to employee is 5 lakh rs, so tds on salary related provisIon are applicable or not?

Ans. When the turnover of business for FY 2017-18 has exceeded the limit as per sec. 44AB(1) of IT act, even though the assessment was processed under presumptive assessment; as per the provision of the act, TDS liability u/s. 192 does arise for salary disbursed for FY 2017-18.

An individual/HUF is exempted from deducting TDS under section 194 A/C/H/I/J, if tax audit was not applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited. But there is no such exemption for TDS u/s. 192.

and please clear below mention provision

refer provisions of TDS,

[Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.]

Ans. Yes, as said above ...The extract is from sec. 194A (i.e. for TDS on interest paid), and similar provisions are also issued for sec. 194C, 194H, 194I, & 194J.

No such provisions for any other TDS liability.

Good Luck.

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