Tds on professional fees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2014 A private limited company has paid statutory audit fees of FY 2012-2013 and 2013 - 2014 in the financial year 2014 - 2015 at the time of finalization of accounts of FY 2013-2014. The fees is Rs. 26000 for FY 2012 -2013 and Rs. 29000 for FY 2013- 2014. Both year of fees has been paid in one payment i.e. Rs. 55000 has been paid in the financial year 2014-2015 as statutory audit fees of FY 2012-2013 and 2013-2014. My question is whether on this payment TDS on professional fees is required to be deducted as per Section 194J as the amount paid is in excess of Rs. 30000 with two different bills of Rs. 26000 and Rs. 29000.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 2014 Yes TDS required to be deducted as the threshold limit of Rs 30000/- is for payment made during the year. TDS should have been deducted by making provision for Audit Fees during finalization of accounts of respective year.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 June 2014 actually may be not if the provision for the same was made in the respective year. In such a scenario you TDS should not apply.

CA Jitender Sharma

CA Jitender Sharma (Expert)
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23 June 2014 I support Mr Nikhil Kaushik, if Expenditure i/e audit fees is booked in books in respective F.Y 2012-13 & 2013-14 below threshold limit then at the time of payment you need not to deduct TDS .

Rupesh Jain

Rupesh Jain (Expert)
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23 June 2014 if not make the provision of audit fee in respective years then you have to deduct the tax. LImit u./s 194 J Rs. 30000/- you make the payment in one year.

if make provision then no requirement of TDS.

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