CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

TDS U/S 194C OF IT ACT

This query is : Resolved 

IF AN INDIVIDUAL WHOSE TURNOVER UPTO LAST YEAR WAS NOT 40 LACS BUT DURING THE CURRENT YEAR AT THE END OF FEB 2008 HIS TURNOVER EXCEEDS MORE THAN 40 LACS. WILL HE REQUIRED TO DEDUCT TDS.


pl. specify the link with Sec 194 C & Auditable turnover

according to section 194c normally individual & huf are not required to deduct tds but there is a situation that an individual or huf whose total sales turnover or gross receipts from business exceeds the monetary limit specified under section 44 ab during the financial year immediately preceeding the finanacial year in which income is to be credited , shall be liable to deduct tax.

mine query is that if in the previous year turnover exceed 40lacs but if in the current year in which tds is be deducted in that year turnover does not expected to exceeds 40 lacs . then is it a requirement to deduct tax.

Thanks

Pawan Narang

As such there is no point to consider the turnover for 194C.But, since the assessee is an individual he gets into the ambit of tds but not solely for 194C.So, he is reqd. to deduct tax at source if the contract payments cross the limit provided in the section.

As per Section 194 C of the IT Act,1961, the liability to deduct tax at source arises if the turnover from business exceeds Rs. 40 Lacs in the preceding financial year. Since the figures for the preceding financial year determine an individual's liability to deduct tax at source, so if the figures in the preceding financial year do not exceed Rs. 40 Lacs, there is no liability even if gross sales in the current year is Rs. 1 Crore(for example).

i agree with abov reply


You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :





Trending Tags
cbdt
cag
unified portal
llp
VAT
coronavirus
corporate law
epfo
pm cares fund
career
ca rankholder interview
itr
ca exams may 2020
esic
tds
aatmanirbhar bharat
taxpayers
law
shares stock
students
close
GST Live Class