TDS liability u/s 194J of I.T. Act

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CA Sanjay Baheti (Querist)
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19 February 2011 A Pvt Ltd.Company established in 1994.However till 31.03.2010 No business activities were carried out. Hence Not covered under Tax Audit as No Turnover till 31.03.2010.W.e.f.01.04.2010 & onwards the company is going to set up Manufacturing Plant which is under Construction stage. During the year 2010-11 the company has paid Professional Charges to Chartered Civil Eng for valuation Purposes of Rs.79950/- till 31.01.2011.

Whether the company is liable for TDS deduction at the prescribed rate u/s 194 J as per I.T.Act at the time of credit of Bills or Payments whichever comes earlier or not.

Further each single payment or bill is less than the Rs.30000/-/20000/- as the case may be.However total accumulated Bills Value are exceeding Rs.30000/-.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 February 2011 Pl note that the turnover criteria is applicable for individual or HUF and not for companies. Further tax has to be deducted at the time of credit to the account of the payee or at the time of payment which ever is ealier subject to the satisfaction of the monetary limit specified in section 194J of the Income tax act,1961.

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