pratik mehta (student) (22 Points)
17 March 2017Hiii..
One of my client having proprietory concern has incomes in the nature of commission or brokerage. [Financial commission for loan passing of clients in automobiles sector]
I have confusion about that if he has paid interest as defined in section 194A, then whether he has required to deduct TDS on the same or not. & when he is liable for audit ??
CA V KARTHICK
(Chartered Accountant in Practice)
(506 Points)
Replied 20 March 2017
TDS liability - TDS under Section 194A have to be deducted if the Payment of Interest is Above Rs 10,000 and it is paid to any person other than the Caterogy exclusively excluded ( Ie , banks , Co-operative Society carrying on Banking Business Ect )
But Since you have mentioned that the Business is a Proprietory Concern, TDS under 194A will be applicable only if he is liable to Audit under Sec 44AB in the Preceeding Provious Year. (ie , FY 2015-16 has to be considered to determine TDS liablity of FY 2016-17 )
Tax Audit will be applicable if the Gross receipts from Business Exceeds Rs 2 Crore for Financial Year 2016-17.
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