TDS

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Vidisha Mehta (Querist)
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12 June 2011 Is a professional liable to deduct tax at source on appointing a professional of same profession on salary basis? i.e for example an advocate who is liable to deduct TDS appoints an advocate on salary basis, then under which section is the advocate liable to deduct TDS (u/s 194J or 194)?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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12 June 2011 Any person, person meaning as defined in the income tax act, i.e. individual, HUF, partnership firm, company, BOI, AOP etc making payment for any services is liable to Deduct TDS as per Secs 192-203 of IT Act.

But for individuals it will be mandatory if he/she undergoes Tax Audit, i.e. if turnover goes beyond 40 Lacs in the concerned Financial Year

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 June 2011 In my view, all the persons including Individuals and HUFs which are not covered
under the tax audit are also liable to deduct TDS on Salaries under section 192.

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Vidisha Mehta

Vidisha Mehta (Querist)
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27 June 2011 Is a professional liable to deduct tax at source on appointing a professional of same profession on salary basis? i.e for example an advocate who is liable to deduct TDS appoints an advocate on salary basis, then under which section is the advocate liable to deduct TDS (u/s 194J or 194)?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 June 2011 If Advocate A1 employs advocate A2, then
the relationship of employee and employer comes into existence.

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A2 is paid salary by A1.

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A1 has to deduct Tax on Salary of A2 in case A2's estimated income is going taxable to be taxable.
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A1 has to consider Salary and any other declared income of A2 ;less deductions allowable, if any, and TDS has to be deducted on monthly basis.

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