Audit in cy no audit in py-tax deduction at source ??

CA Abhishek Singh (practice) (2060 Points)

15 November 2013  
Hello everyone, one of my client/proprietorship is a production house which at present is shooting for a television serial. In PY 12-13 my client was not liable for tax audit but in current year gross receipts will exceed 1 crore/25 lacs. In the current year they deducted TDS on all the payments made ignoring the fact that in the previous year it was liable for audit. My question 1. What will be the turnover/gross receipts limit for a production house i.e 1 cr or 25 lacs 2. Is tax deduction of source warranted in the current year ? 3. Should this practice of deduction of TDS to be continued or i should advise the client not to deduct the TDS ? waiting for the views of the experts