Tax audit and tds

TDS 842 views 6 replies

Guest

An individual assessee having constuction contracts has not deducted TDS on the subcontract expenses as for last 2 years his receipts had not crossed 1 crore. (He was Audited in FY 10-11) But This year he crossed 1 crore. Should I disallow the expenses?

Replies (6)

saurabh shahu

Audit Assistant

142 Points Joined June 2011

Yes...........Expenses would be Disallowed

CA SUKSHAM ARORA

569 Points Joined February 2014

ACCORDING TO ME , THE EXPENSE WOULD BE DISALLOWED

RENU SINGH

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21627 Points Joined March 2011

Expenses will be disallowed for not deducting TDS as per the provision

And he will be called as assessee in default.

CA. Animesh Kumar Jain

ACA DISA (ICAI) B.Com

226 Points Joined February 2011

May be not deducted...

kanh singh

CA Article

121 Points Joined June 2011

I think expenses would not be disallowed due to turnover in 2012-13 was not exceeding rs 100 lacs.

Any individuals and HUF whose total sales/turnover/receipts from the business/profession carried on by him in the immediately preceding financial year not exceeded the monetary limit specified under section 44AB(a) or (b) (i.e. it exceed Rs. 1,00,00,000 / 25,00,000, as the case may be), are not required to deduct tax at source.

Guest

Originally posted by : kanh singh
	I think expenses would not be disallowed due to turnover in 2012-13 was not exceeding rs 100 lacs. Any individuals and HUF whose total sales/turnover/receipts from the business/profession carried on by him in the immediately preceding financial year not exceeded the monetary limit specified under section 44AB(a) or (b) (i.e. it exceed Rs. 1,00,00,000 / 25,00,000, as the case may be), are not required to deduct tax at source.

I agree with you. I feel that only turnover for FY2012-13 year is considered to decide whether he should deduct TDS in FY 2013-14 even if he crosses 1Cr in 13-14.

I asked the same Q to experts and they have confirmed.

Thanks