Last year one of my client(individual assessee) had turnover of Rs.58.00 Lacs but since the profit was less than 8% hence audit was conducted(due to section 44AD)
Now this year he has paid interest to some party of Rs.25000/-(Turnover is still less than 1 Cr)
Whether he is liable to deduct TDS u/s 194A
As per my view, after reading section 194A it says that TDS to be deducted only if individual assesseee was liable to audit u/s 44AB(due to clause (a) or (b) of 44AB i.e.due to turnover criteria ie.e.having turnover of Rs.1 cr)
17 April 2014
Yes, he required to deduct TDS, Because of you conducted tax audit u/s 44AB only but due to section 44AD insists to conduct tax audit it doesn't means tax audit u/s 44AD it also tax audit u/s 44AB.
In one word we can say those whose books of accounts are audited in the previous year to the current financial year are liable for TDS provisions.
17 April 2014
Thanks for timely reply but if one go with section 194A or C, it says that individual need not too deduct TDS if last year books were not audited u/s 44AB due to turnover criteria means even the audit was done under 44AB(as there is only one section of conducting audit) but if turnover is less than 1 cr then no TDS liability will arise
18 July 2014
dear madhur. pls go throgh sec44 AD clause 5,
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
this sub section is self explainatory. hence the assesee will be laible to deduct TDS u/s 194 A.
09 November 2015
NO. TDS PROVISIONS WILL NOT BE APPLICABLE IN CASE OF AUDIT U/S 44AD. PLEASES REFER TO THE TDS PROVISION READ AS UNDER: Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.] from above it is clear that no provisions of TDS Apply..
09 November 2015
NO. TDS PROVISIONS WILL NOT BE APPLICABLE IN CASE OF AUDIT U/S 44AD. PLEASES REFER TO THE TDS PROVISION READ AS UNDER: Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.] from above it is clear that no provisions of TDS Apply..
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