LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds

27 July 2013

I have an Individual client who is in medical line(surrogacy). He is sure that his gross receipt will exceed Rs. 25 lacs in the current F. Y. i.e. 13-14, so I advised him to obtain TAN & deduct TDS. The TAN is alloted by department in this month (July 2013).

I wanted to clarify that whether he has to deduct tax on the payments already made during the period from Apr 13 to June 13 ? If yes then what is procedure for filing belated TDS return for the 1st quarter of the F. Y. 13-14 & what is Interest & penalty applicable to him ?

Also, whether payment ot surrogate mother is liable to deduct tax ? if yes then under which section ?

Reply
Follow
Share

10 Replies

CA vinod (Chartered Accountant) (518 Points)
Replied 27 July 2013

In case of indivduals/HUF if the turnover or professional receipt exceeds specified sum (i.e 25,00,000 in your case) in previous year, then he is required to deduct tax at source. Since his turnover is not exceeded the specified limit in the previos year, there is no proble.

1 Like

SAURABH NENE (Chartered Accountant) (226 Points)
Replied 27 July 2013

Liability to deduct tax at source arises in case of individual only if he/she was subject to tax audit in the preceeding financial year. In your case doctor will be liable to deduct TDS in current F.Y only if he was subject to tax audit in prceeding year i.e. F.Y 2012-13.

If yes, he is liable to deduct TDS in current F.Y . You can file belated return with fees of Rs. 200 per day of default u/s 234E. In your case due date for filing of return for Q1 of F.Y 2013-14 was 15th July 2013. Since then till the date of filing of return calculate fee @ 200 per day.

1 Like

CA Ritu Chauhan (CA) (158 Points)
Replied 27 July 2013

Thank you Sir for the reply but he is sure that his gross receipt will exceed Rs. 25 lacs in this year so his accounts are liable to get audited for the A. Y. 14-15, so he should start deducting tax from current year or from next year ?

SAGAR (ARTICLED ASSISTANCE) (236 Points)
Replied 27 July 2013

From the current year ie FY 2013-14

1 Like

SAURABH NENE (Chartered Accountant) (226 Points)
Replied 27 July 2013

If he is liable for audit for current F.Y i.e. 2013-14, he should start deducting TDS from next F.Y i.e. 2014-15

1 Like

CA Ritu Chauhan (CA) (158 Points)
Replied 27 July 2013

So what will be reported in clause no. 21 of the Form 3CD for compliance of chap XVII-B regarding deduction of tax ?

CA Ritu Chauhan (CA) (158 Points)
Replied 27 July 2013

Sorry Clause no. 27

SAURABH NENE (Chartered Accountant) (226 Points)
Replied 27 July 2013

Auditor should write a comment that, the assessee is subject to tax audit first time for the relevant ay Hnece liability to deduct tax did not arise in the relevant p.y

1 Like

CA Ritu Chauhan (CA) (158 Points)
Replied 27 July 2013

Okay. Thanks alot sir, its really helpful.

(Guest)

Originally posted by : CA vinod
	In case of indivduals/HUF if the turnover or professional receipt exceeds specified sum (i.e 25,00,000 in your case) in previous year, then he is required to deduct tax at source. Since his turnover is not exceeded the specified limit in the previos year, there is no proble.