Hello
I understand the TDS is deducted for professional fees more than Rs. 30,000. I did some consulting work for which I will be paid Rs. 50000.
I have started working independently this year and this is my first earned money. I dont have any other income and neither will get any more consultancy for this finanancial year.
Is it possible somehow to request the company for whom I have worked to pay me the full amount and not deduct TDS? How can I do so?
No you can not request to company for it because if company did not deduct tds than company will have to pay penalty as sum equal to tds amount u/s 271C but after taking permission from AO you can submit form 13 for lower deduction.
| Originally posted by : Pankaj Arora | ||
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No you can not request to company for it because if company did not deduct tds than company will have to pay penalty as sum equal to tds amount u/s 271C but after taking permission from AO you can submit form 13 for lower deduction. |
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AT THE SAME TIME , IF COMPANY FAILS TO DEDUCT TDS THEN THE EXPENDITURE WILL BE DISALLOWED..................
No problem.If the total income during 12 months is within the taxable limit that tds amount can be get back by filing your return of income.
say, your entire taxable income will be 160000 then you will get the tds amount return back. contact chartered accountant.
u can bifurcate total amount in two parts--
one for professional
nd other for technical services
correct me plz if i m wrong
| Originally posted by : Tehsinkhan pathan | ||
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Originally posted by : Pankaj Arora No you can not request to company for it because if company did not deduct tds than company will have to pay penalty as sum equal to tds amount u/s 271C but after taking permission from AO you can submit form 13 for lower deduction. AT THE SAME TIME , IF COMPANY FAILS TO DEDUCT TDS THEN THE EXPENDITURE WILL BE DISALLOWED.................. |
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dear friend
there is no way than to deduct tax at source. the only solution is that you have to split your bill into two. one should charge an amount less than 30000 for professional fee and th other one for some other charges
You have to obtain permission from the assessing officer regarding Tds applicability.
Split your Bill amount into 2 part which should be upto Rs.20000/-
i.e.less than Rs.30000/-.
Dear ravi,
u have two option , no deduction of tds on professional fee:
First- Take a certificate from concerned A.O. for not deduction of TDS or at lower rate of TDS.
Second- Invoices should be in different party name ( issuer) and invoice amount should not be more than Rs.30k.
if entity does not deduct TDS on payment of Bill, exp. will be disallowed as per income tax Act if payment is made Exceeding rs.30000 TO A PARTY IN A SAME FINANCIAL YEAR.
Regards
Pankaj alok
thankyou very much all of you. It helped
CAclubindia
