Clause 34 of form 3cd

Whether its first year of audit? If yes, then there is no need to deduct tds. & if it is second year then expenses should be disallowed.

Being a firm assessee need to deduct TDS irrespective whether the firm liable to audit or not, otherwiae expenses will be disallowed.

So as informed in above case assessse being Firm need to deduct TDS 

Dear Saurabh,

Do as follows:

1.  qualify the audit report stating that the client has not complied with provisions of TDS sections

2.  In 34A mention TAN as DTAN99999T

3.  Thereafter compute interest penalties extra that are payable on such non-deductions and provide the details of the same in 34(c).

Yes, CA Tejas Mistri is right, I had not read that its a firm