Applicability of TDS

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Shreyansh Kothari

Shreyansh Kothari (Querist)
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09 December 2016 under composition scheme, are the provisions of TDS applicable or not.....

Bharath

Bharath (Expert)
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09 December 2016 TDS provisions are applicable irrespective of whether you pay under composition scheme or normal scheme.

Shreyansh Kothari

Shreyansh Kothari (Querist)
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09 December 2016 44ad i mean

CA Suresh Jain

CA Suresh Jain (Expert)
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09 December 2016 TDS provisions are applicable in your case

Shreyansh Kothari

Shreyansh Kothari (Querist)
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09 December 2016 Refer subsection 4 of section 44AD as below (4) The provisions of Chapter XVII-C shall not apply to an eligible assessee in so far as they relate to the eligible business. That means no tds provisions applies to it ?

Shreyansh Kothari

Shreyansh Kothari (Querist)
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09 December 2016 is it correct kya ?

CA Suresh Jain

CA Suresh Jain (Expert)
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09 December 2016 Sorry for earlier reply, Mr. Kothari you are right. Inconvenience is regretted

Shreyansh Kothari

Shreyansh Kothari (Querist)
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09 December 2016 Thank you Sir Mr.N Jain

Bharath

Bharath (Expert)
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09 December 2016 Hi,

"The provisions of Chapter XVII-C shall not apply to an eligible assessee in so far as they relate to the eligible business."

Chapter XVII-C deals with provisions relating to Advance Payment of Tax. On plain reading of this subsection, we conclude that eligible assessees are exempt from payment of Advance Tax. The second part of Provision says “in so far as they relate to eligible business” and therefore, advance tax is paid proportionately for the income other than income u/s 44AD.

Your query was with regards to TDS. So it should be applicable in my view. Only advance tax provisions are exempt.

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