Tds on technical service

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Rakesh Sharma (Querist)
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27 December 2014 Dear my friend is running a proprietor concern & expected turnover for the F.Y. 2014-15 will be around Rs. 85-90 Lacs. & tentative NP will be below 8%.

Today, he want to take a technical service by a individual technician for betterment in production.

He will get Rs. 20000/- per week & the total amount will be Rs. 80000/- for 4 weeks.

My question, Should we deducted Tax while giving him technical fee?

Please advise.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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27 December 2014 An Individuals or an H.U.F. is not liable to deduct TDS on such payment except where the individual or H.U.F. is carrying on a business/profession where accounts are required to be audited u/s 44AB, in the immediately preceding financial year.

A person is liable to get its accounts audited u/s 44AB if during the relevant financial year its gross sales, turnover or gross receipts exceeds Rs. 1 Crore (A.Y. 2015-16) (Rs.60 lacs for A.Y.2012-13) in case of a business, or Rs. 25 lacs (A.Y.2015-16) (Rs. 15 lacs for A.Y. 2012-2013) in case of a profession.

So if u r not liabile for tax audit in previous year then u need not to deduct tds