TDS

This query is : Resolved

shrishail (Querist)
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07 February 2011 Dear Sir/Madam,

I am induvidual mannufacturer of PVC bags. My turnover is below 40,00,000/-. Can any body tell me whether i am liable to Deduct TDS on Contractor u/s 194C. Please clearirfy. I am totally confused.

Thanks in advance.

Regards,
Shrishail.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 February 2011 In the immediately preceding financial year if your turnover crosses Rs.40 lakhs ,you are liable to deduct tax u/s 194C, otherwise not.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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07 February 2011 Your TDS liability starts only after you come in the ambit of Tax audit.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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07 February 2011 Agreed with Mr. Warrier, in the current year you are not liable to deduct TDS.

If the tax audit provisions were not applicable to you in the previous year too, then no need to deduct TDS. But if it was applicable to you in the previous year, then TDS will have to be deducted in the current year, even if your this year's turnover is lees than the tax audit limit.

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