Tds query

This query is : Resolved

CA Sahil Singla.. (Querist)
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20 October 2013 Sir, an individual doing business is liable to Audit u/s 44AB. Now he wants to start another business in F.Y. 2013-14 in which he would be a proprietor. Whether he is liable to deduct TDS u/s 194J as he is being subject to audit for another business or exempt since first year of second business ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 October 2013 As a proprietor, it doesn't matter how many different business you do. All the businesses are clubbed for income tax purposes. Accordingly, he shall remain liable for complying the provisions of 194J.

CA Sahil Singla..

CA Sahil Singla.. (Querist)
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21 October 2013 Expert

The second provisio to Section 194J says that TDS to be deducted by Invidual on Professional or techincal fees if covered under 44AB. There is no mention of royalty. Does that mean, no TDS by indiviual on royalty even if subject to Audit ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 October 2013 the way the proviso is structured, you can say that in case of royalty TDS won't be deductible in this case.

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