TDS deductability
Sumit Gupta (120 Points)
13 September 2018
If invoice is for 30000 for professional fees and 5400 is GST. should I deduct TDS??
Sumit Gupta (120 Points)
13 September 2018
RAJA P M
("Do the Right Thing...!!!")
(127058 Points)
Replied 13 September 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 14 September 2018
Here the query is for single bill.......... of service amount exactly 30K ........ no more bills to be attached/expected in future........... so, evaluate TDS liability u/s. 194J....
RAJA P M
("Do the Right Thing...!!!")
(127058 Points)
Replied 14 September 2018
Thank You Sir for Your reply...
Also Bill value exceeding above 30k like 50k and above. But, CAs are not like or intent to deduct TDS. So, only it's my doubt sir.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 14 September 2018
Liability doesn't arise for individuals/HUF not liable to tax audit in preceeding year........ otherwise TDS must be deducted in case payment exceed 30K.......
RAJA P M
("Do the Right Thing...!!!")
(127058 Points)
Replied 14 September 2018
| Originally posted by : Dhirajlal Rambhia | ||
 |
Liability doesn't arise for individuals/HUF not liable to tax audit in preceeding year........ otherwise TDS must be deducted in case payment exceed 30K....... |  |
Yes... Sir.
But, The same way He is not ntent to deduct TDS if file under Tax Audit (A company's last 4years T/o above 5crores)
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 14 September 2018
Sec. 40(a)(ia) of the Income Tax Act,1961 emphasis on that expenditure covered under mentioned TDS sections paid to resident and debited Profit & Loss Account will not be allowed as deduction while computing the income under the head ―Profit and Gains of Business or Profession‖, if : -
a) Tax has not been deducted at source,
b) Tax deducted at source and the same is not remitted, or
c) If expenditure is debited and tax deducted at source during the previous year, tax is not remitted within the time-limits mentioned in section 200 such expenditure will be allowed as deduction in the year of remittance of the tax.
The following payments are covered under Section 40(a)(ia):
a) Interest U/s 194A
b) Commission or brokerage U/s 194H
c) Professional or Technical Fee U/s 194J and
d) Contractors & Sub Contractors U/s 194C
The provisions of the above mentioned TDS sections require that tax has to be deducted at source when amount is paid or credited to the account of the Payee, whichever is earlier. When the amount is credited to suspense account or any account, by whatever name called, then it is treated as amount credited to the account of the payee and tax has to be deducted at source. Hence, tax has to be deducted at source even on provisions made in the books of account to which TDS provisions are applicable.
In order to rationalise the provisions of disallowance on account of non-deduction of tax from the payments made to a resident payee, Sec. 40(a)(ia) has been amended to provide that where an assessee makes payment of the nature specified in the said section to a resident payee without deduction of tax and is not deemed to be an assessee- in-default under Sec. 201(1) on account of payment of taxes by the payee, then, for the purpose of allowing deduction of such sum, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee. These beneficial provisions are proposed to be applicable only in the case of resident payee.
In other words, if the deductor is able to establish that the payee has furnished the return of income by including such income in his return and has paid tax due on income declared by him in such return of income, it shall be deemed that the assessee has deducted and paid tax on such income on the date of furnishing return of income by the resident payee.
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