TDS Liability-Urgent

This query is : Resolved 

Querist : Anonymous (Querist) 25 July 2011

Whether assesse is liable to deduct TDS if his turnover in the current F.Y is less than 60 lakhs ,but liable for audit in last year???

What in case he is liable to get his accounts audited u/s 44AD

CMA. Subhash Kumar Jha (Expert)
25 July 2011

If the assessee had a turnover in excess of 40L.. during last FY, then irrespective of current years turnover..TDS provisions would apply.

CMA. Subhash Kumar Jha (Expert)
25 July 2011

Under 44 books of account are needed to be maintained & therefore the question of audit does not arise.

Applicability of TDS provisions depends on the Turnover during previous year.

Querist : Anonymous (Querist) 25 July 2011

44AD i mean to say assesse is showing less than 8% and required audit???

so even if assesse has no other payments on which required to deduct TDS? he is required to report/disclose the payment made to transporters of whom he obtained PAN

CMA. Subhash Kumar Jha (Expert)
25 July 2011

so if 8% option has not been taken & the assessee has opted to maintain the books & show a lesser profits.. then its not a case of 44AD...

& if the Turnover is less than the required limit for taxa audit... no audit is required.

Hence...TDS provisions would not be attracted.

Querist : Anonymous (Querist) 26 July 2011

From A.Y. 2011-12 Assesse is requird to get his accounts audited if he shows profit less than 8%??
So in clear terms he is required to get his accounts audited/.

CMA. Subhash Kumar Jha (Expert)
26 July 2011

TDS by Individual and HUF (Non Audit) case not deductible
An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him does not exceeds the monetary limits(Rs.60,00,000 in case of business & Rs.15,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during the preceding financial year shall not be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.So no tax is deductible by HUF/Individual in first year of operations of business even sales/Fees is more than 60/15 Lakh.

Querist : Anonymous (Querist) 27 July 2011

In previous year A.Y. 2010-11 audit done .
Now from Ay-2011-12 Audit is mandatory even for Individual & Hufs if they are shoeing less than 8% of sales, even if sales are less than 60 lakhs ,please come to the point???

CMA. Subhash Kumar Jha (Expert)
27 July 2011

You are not reading the exact wordings....

Please see carefully....the condition is ...audit under section 44AB (which is turnover based).... so in your case TDS will not apply.

Only if, audit under section 44AB was done for last year, then only TDS would apply in the current year.

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