Tds on technical service
This query is : Resolved
Rakesh Sharma
(Querist)
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.
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)
(Expert)
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
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
CA Kumar Mukesh
(Expert)
27 December 2014
CA with Mr. Annkit, his opinion is based on Section 194J, 44AD and section 44AB
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