LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Tds when sales reduced to less than 1cr?

Batla (Consultant) (37 Points)

19 February 2017

Let's say the turnover of a firm was 1.5Cr in FY 2014-2015 and the firm started deducting TDS as per law.

But In FY 2015-2016 the turnover drops to 60 Lakh

Is it mandatory for the firm to deduct TDS in FY 2016-2017??

Reply
Follow
Share

6 Replies

Anil Diwan (Professional) (83 Points)
Replied 19 February 2017

As per Income Tax Act’1961 and the Income Tax Rules it is not mandatory file a NIL TDS Return.

A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act’1961 for any quarter.

CA Hariprasad Nayak (Chartered Accountant) (221 Points)
Replied 19 February 2017

hi nissar, for a firm to deduct taxes at source, turnover is not a relevant factor.. turnover is a relevant factor only for individuals and HUF

Rupinder Kaur (CA Practice) (89 Points)
Replied 19 February 2017

partnership firms are always liable to deduct tds irrespective of the monetary limit of 1 cr.
turnover crieteria is for individual and huf only

Anil Diwan (Professional) (83 Points)
Replied 19 February 2017

Partnership firm and company is supposed to deduct TDS irrespective of sales turnover.

Following persons are liable to deduct the tax at source:-

A) All Individuals (Including sole-proprietorship concerns) and HUF, who are not covered under tax audit, shall deduct TDS against all the specified payments except:-