Tds

This query is : Resolved

CA Mohit kumar jain (Querist)
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06 August 2012 Sir/Mam

one of My friend paid rent of Rs.350000, he is liable for Audit in this year, but he don't have TAN no. so didn't deduct tax, there is any tax planing so the expenditure become allowable,

if he bifurcate expenditure as
175000 for rent
175000 for furniture etc. then TDS liability arise or not

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 August 2012 Being a freind as well as CA it's your duty to get TAN No. for him.
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The above bifurcation will not save your friend from his TDS Liability is payee is one & the same person.
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Please also specifically write the Assessment Year for which he is liable for Audit and the FY to which the expenditure pertains.
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CA Mohit kumar jain

CA Mohit kumar jain (Querist)
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07 August 2012 Dear Paras Sir,

expenditure pertains for the A.Y. 2012-13 & Audit liability also for same A.Y.

But sir we have seprate exemption limit for both @1.80 Lacs each.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 August 2012 In case of an individual/HUF, TDS is required to be deducted if the individual/HUF was required to get his accounts audited in the PREVIOUS YEAR.

The expenditure is for the FY 11-12.

Accordingly, TDS was required to be deducted if the assessee was required to get his accounts audited in FY 10-11.

If he was not required to get his accounts audited in the FY 10-11, TDS is NOT required to be deducted on such rent and the expense shall be allowed.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 August 2012 In case the person receiving Rental Charges is the same TDS provisions are applicable.
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The limit may be understood on the basis of
Payee.
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Expert Siddharth Bhardwaj's reply is quite explanatory and wholesome.

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