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CA SMR (Querist)
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20 March 2011 Dear Experts,

a proprietor owning an Advertising Business has reached a turn over of RS 14.81 lakhs this financial year.It is expected that next year it will cross 15 lakhs.

Queries- Will he be liable to
a) TAx Audit next year?
b) Deduct TDS from next year onwards?

Thanks

sudhakar ca cwa

sudhakar ca cwa (Expert)
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20 March 2011 For caluclating TDS for the current year we need to consider the applicblity of Tax audit of Previous year.

If previous if he libale for Tax audit then we liable to dedcut fr the curreny year.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 March 2011 Advertising comes under 'business' and not under 'profession'.
Refer ICAI publication "Issues on Tax Audit",2000 edition,page 24. In view of that, the assessee has not crossed the threshold limit. Hence 44AB and chapter XVIII-B of the Income tax Act,1961 do not apply meaning thereby tax audit and tax deduction are not required.

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