Tax audit applicability

Others 753 views 4 replies

If an assessee was required to get audited u/s 44AB for turnover exceeding Rs. 1 Crore in F.Y. 2012-13 & in FY 2013-14 turnover of assessee is Rs. 80 Lacs. Then is he liable to deduct TDS?

Replies (4)
TDS provision are not governed by sec 44AD.. They are governed by sec 192-195..
TDS provision are not governed by sec 44AB.. They are governed by sec 192-195..

yes he is liable to deduct TDS

 

A Company which is under audit in last f.y. had to deduct TDS in upcoming year

Samiksha,

In case of Individual or HUF, payer is liable for TDS provision if their sales,gross receipts or turnover exceeds the limit prescribed u/s 44AB in the immediately preceding financila year.

This provision apllies to Sec 194A(Interest on other than securities),194C( Contract),194H(Commission or Brokerage),194I(Rent) and 194J(Professional Services)

In short for other than above,TDS will be payable even if turnover in previous year do not exceeds 44AB limit.

Please also note that for each above section there are some exception provided where TDS is not liable to be paid even if previous year turnover exceeds 44AB limit.For example any service used or work done exclusively for personal purpose then no TDS will be payable.

For companies TDS should be paid even if in previous year they are under audit or not.

So before deducting TDS, read each section porperly.


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