Applicability of TDS
This query is : Resolved
Shreyansh Kothari
(Querist)
09 December 2016
under composition scheme, are the provisions of TDS applicable or not.....
09 December 2016
TDS provisions are applicable irrespective of whether you pay under composition scheme or normal scheme.
Shreyansh Kothari
(Querist)
09 December 2016
44ad i mean
CA Suresh Jain
(Expert)
09 December 2016
TDS provisions are applicable in your case
Shreyansh Kothari
(Querist)
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
(Querist)
09 December 2016
is it correct kya ?
CA Suresh Jain
(Expert)
09 December 2016
Sorry for earlier reply, Mr. Kothari you are right. Inconvenience is regretted
Shreyansh Kothari
(Querist)
09 December 2016
Thank you Sir Mr.N Jain
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.
"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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