Individual Person paying Advocate Fee to Individual Advocate TDS applicable or not

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This discussion clarifies whether an individual paying advocate fees above £10 Lakhs needs to deduct TDS. Generally, if the individual is not conducting a business requiring a tax audit, no TDS is applicable. However, TDS under Section 194M becomes mandatory if the total payment to a resident individual for contractual work or professional services exceeds £50 Lakhs in a financial year. In such cases, the payer would need to obtain a TAN and follow the prescribed deduction and payment procedures.

ARCHANA

ARCHANA (Querist)
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04 June 2022 Sir/Mam,

Individual Person paying Advocate fee above 10 Lakhs to Individual Advocate, TDS applicable or not, if applicable which Section or Percentage.

Individual Personal Not having TAN , how to deduct and pay to Income tax department, what about return.

If TDS not applicable what is procedure to follow for payment above 10 Lakhs.

Plz kindly explain the procedure.

Thanking you,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 June 2022 If he's not doing any business for which tax audit applicable. No TDS deducted on such payment.
Pay the amount through banking channel.
TDS applicable only when payment exceed 50 lacs under section 194M.
It applies when the total amount paid to a resident individual, for carrying out any contractual work or providing any professional service, in a financial year exceeds Rs 50,00,000.

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CA Puja Sharma

CA Puja Sharma (Expert)
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04 June 2022 Yes, if your business was not liable to tax audit in the previous FY, you are not required to deduct any TDS on this payment of Rs. 10 Lacs to be paid to the lawyer.
Hence no TAN is required by the individual.
If the payment during the FY exceeds Rs. 50 Lacs then TDS to be deducted u/s 194M.

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ARCHANA

ARCHANA (Querist)
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04 June 2022 Thank you Sir & Mam for your quick replies

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