Section 194j tds

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aman (Querist)
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01 September 2012 An individual or huf r liable for the deduction of tds if he conduct his tax audit in the immediately preceding financial year.
Mr. A is the proprieter of ABC who conducts his tax audit.
A transfers his business to his son B. Now B conducts his tax audit in the f/y 2010-11.
Would B be liable for the deduction of tds undr section194j for the f/y 2011-12..
Contention of B is that he is not required to deduct tds since he is conducting tax audit for the first time.
Plz reply ..its urgent

Soumitra Basu

Soumitra Basu (Expert)
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02 September 2012 B's contention is not correct. If his books of accounts were the subject matter of tax audit for the previous year, he must deduct TDS.

Soumitra Basu

Soumitra Basu (Expert)
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02 September 2012 To add further, B is not liable for TDS for the financial year 10-11 but for 11-12 he shall be liable.

aman

aman (Querist)
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02 September 2012 That means B is not requird to deduct tds for 2010-11 irrespective of the fact that his father was required to deduct tds on the same when he(A) was the proprieter.??

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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06 September 2012 With due respect to the View expressed by various Experts i would like to bring to the notice that TDS is liable to be deducted if Books of Accounts are liable for tax Audit in previous Year. Accordingly when B received the business in 2010-11 his books of accounts were liable for tax audit hence he is liable to deduct TDS u/s 194j in 2010-11 i.e. year of Receipt of Business.

Soumitra Basu

Soumitra Basu (Expert)
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06 September 2012 According to proviso of section 194J if books of accounts of that particular assessee is liable to tax audit during the financial year immediately preceding the financial year, he shall be liable liable to deduct income tax under this section.
Therefore, B is not liable to deduct tds in financial year 2010-11

aman

aman (Querist)
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07 September 2012 Please be clear...this is creating confussion

Soumitra Basu

Soumitra Basu (Expert)
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08 September 2012 B is the owner of business from the Financial Year 2010-11. During the said year B need not have to deduct TDS. However, he has to deduct TDS from the Financial Year 2011-12.

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