Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2012 If I don not come under Tax audit then I will be not deduct TDS of anybody.

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2012 I purchase the metrial for Export. In the Invoice the purchaser is mention material value and packing charges seprately so I will book full purchase or seprately as per below.

Party cr. 1100
Purchase dr. 1000
Packing charges dr. 100

Party cr.1100
Purchase dr.1100

What process is nearest well. pls revert.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 May 2012 Who is liable to deduct: Any person other than individual and Hindu Undivided Family. However, individual and HUF are also covered if they are liable to get their accounts audited u/s 44AB. In other words, individual and HUF, if their gross receipts/turnover exceed the limits specified in section 44AB, are also liable to deduct tax at source from payments they make.

So you are not required to deduct TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 May 2012 Regarding purchase. yes its is good to book both separately.

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2012 this F.Y. (12-13) my turnover will be under 1 crore then I will deduct TDS or not.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 May 2012 For FY 2012-13 Tax Audit Limit is Rs 100 lakh for business, So tax audit not applicable to you. Even if tax audit was applicable you were to deduct TDS from next Fy 2013-14.

TDS deduction required from the next year onward once tax audit is applicable.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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02 May 2012 AGREE WITH ABOVE EXPERT..

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2012 I serve the facilities to Foreigner like when they come in India then hotel booking, travel booking etc and against this they transfer amt. in account so now I want to know that I need of registration in FEMA and FCRA or not so pls suggest me on this that what process is smooth of foregion Inward.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Here’s a clear summary of your queries:

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### 1. **TDS Deduction and Tax Audit Applicability**

* **Who must deduct TDS?**
Generally, **all persons except individuals and HUFs** are required to deduct TDS.

* Individuals and HUFs **need to deduct TDS only if their accounts are required to be audited under Section 44AB** (i.e., turnover exceeds the prescribed limits).
* **For FY 2012-13:**

* Tax audit limit for business: Rs 1 crore (Rs 100 lakh).
* If your turnover is **below Rs 1 crore**, tax audit does **not apply** and hence you **are not required to deduct TDS**.
* **If turnover exceeds limit in a future year**, TDS deduction obligation starts from that year onwards.

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### 2. **Accounting for Purchase and Packing Charges**

* You received an invoice with:

* Material value and packing charges mentioned separately.
* **Recommended accounting treatment:**

* **Book separately:**

* Purchase account Dr. Rs. 1000
* Packing charges account Dr. Rs. 100
* Party (creditor) account Cr. Rs. 1100
* This is cleaner and more transparent for bookkeeping and taxation.

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### 3. **Regarding Foreign Inward Payments and Registration**

* You mentioned providing services like hotel booking and travel for foreigners who pay you in India.
* Regarding **FEMA (Foreign Exchange Management Act)** and **FCRA (Foreign Contribution Regulation Act)**:

* **FEMA registration:**

* Not mandatory for normal business receipts from foreign clients unless you are involved in regulated activities or foreign exchange dealings beyond prescribed limits.
* **FCRA registration:**

* Applicable only if you receive foreign contributions/donations for charitable/non-profit purposes, not for business income.
* For normal commercial transactions with foreigners, usually no special FEMA or FCRA registration is required.

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If you want, I can help you with detailed procedural guidance or specific forms for FEMA or tax compliance!

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