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Applicability of TDS Provision

Jitendra Jhanwar (Officer) (129 Points)

19 December 2009

A new Proprietorship Firm starts its business in F.Y. 2009-10.

The turnover in next three years are as follows:-

2009-10 50 Lacs

2010-11 20 Lacs

2011-12 60 Lacs

Plz tell me are TDS Provisions applicable in F.Y. 2009-10 and 2011-12 or not ?

Tks in Advance

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7 Replies

Shiva Kumar (CA Final) (208 Points)
Replied 19 December 2009

Except for salaries(192) and payment made to Non-residents(195), generally to invoke a TDS , we have to see the previous year TO in case of Individuals and HUF.

The previous year TO should exceed the limit under section 44AB(i,e., Rs.40L at present).

In applying the above Logic,

(a) In case of salary and NR payments TDS is applicable for all years

(b) For others

(i) 2009-10 - TDS not applicable - Preceeding year TO is not avialable

(ii) 2010-11 - TDS Yes

(iiI) 2011-12 - TDS not applicable - preceeding year is Less than 40L

Hope this clarifies you,

Shiva

Arun Dhawan (Student) (65 Points)
Replied 19 December 2009

I Agree With Shiva Kumar

nikhil bapat (CA) (212 Points)
Replied 02 January 2010

Agree with Shiva Kumar

However, the relevnat sections must be seen since not all sections of Ch XVII B provide for a turnover based exemption to individuals & HUFs

Bimal Thacker (Proprietor) (762 Points)
Replied 02 January 2010

Dear Nikhil Shiva is correct. Other then 192 and 195 according to you which section will apply?

ALPESH PALSANA (STUDENT) (26 Points)
Replied 14 April 2010

mr. nikhil shiva is right and we should also see about new amendment i.e. limit of TO is Rs. 60000 for asst. year 2011-12.

Srinivas Maddineni (Accountant) (47 Points)
Replied 10 December 2010

Dear Nikhil,

what are the tds rates for payment to a non resident,

avijit chatterjee (Asviser) (26 Points)
Replied 14 December 2010

I run a small proprietorship (professional services, no employees) with turnover around 15 lakhs. Pl clarify as a matter of abundant caution that TDS will need to be deucted when turnover crosses 40 lakhs.

Thnks regards