Liability of deduction of tds

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Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2014 Any person who work as a contractor with the turnover of rupees 3000000 in the previous year. Although he is not liable for tax audit, but opted for the audit voluntarily.

Whether he will be responsible to deduct TDS on the payment made for the rent of vehicles hired by him?

Murlee

Murlee (Expert)
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04 February 2014 The words used are "if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.07.2010, or as the case maybe 1 Cr ot 25 L) in previous year, he is required to deduct tax at source." Here the condition given is that of turnover and not of audit hence in my opinion TDS is not required to be deducted on payments made by this contractor.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 February 2014 The Turnover limit is applicable for the individuals and proprietors. You have not mentioned the nature of your company. If it is other than individual and proprietor turnover is not the criteria for deduction of TDS means all partnership firms, companies and associations shall be liable for TDS to be deducted and deposited in all cases including rent if it is exceeding the limit as prescribed under that head.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2014 In the above case, the person is a individual and provides the facility to pick and drop students from home. He does not own any buses but hires from a third party and pays rent.
i am asking here for his liability of deducting TDS on payment made to third party.