Tds deduction 1Cr or Audit 1st time

As my turnover in fy 19-20 is 70 lac and i get my books audited and my turnover in 20-21 is 3 crores So if i made payment to subcontract of rs 300000 so i need to deduct tds on that or not
As tds deduction applicability is on audit or it is on turnover based like 1 cr
Replies (5)
Quick Summary
This discussion clarifies TDS deduction obligations, particularly for subcontractor payments. While some sections mention turnover thresholds or audit applicability for individuals and HUFs, payments for contract work under Section 194C generally do not have a turnover threshold for TDS deduction. Even if your overall turnover is below £1 crore, you may still be required to deduct TDS on contract payments if they exceed the specified limits.

Irrespective of turnover, you are required to deduct TDS @ 1% or 2% depending upon the nature of payee, when payment made is in excess of 30000 or aggregate of payments exceeds 100000
Individuals & HUFs are not required to deduct Tds in non audit cases .


Tds provisions applicable only if the tax audit is applicable.


Suppose , if you are a common man & making payment to Doctor 100000/- & Lawyer 50000/- etc , there is no need to deduct tax.Every person can't have the TAN &it's not required also

Most of times we pay huge payments to doctors , still it's not required to deduct tax u/s 194J even if it is above 30k
For professional payments, turnover is to be considered. for contract payments there is no turnover threshold for TDS. Mr. Eswar reddy if you could quote relevant sections, I would feel obliged
Check even 194IB also for clarity..

There are specific provisions for non audit cases.General provisions are not applicable to Individuals & HUFs not liable to tax audit
That's what I want stress upon... where there's requirement it has been mentioned in the relevant sections but in respect of contract payments there's no turnover threshold ...if you check the earlier edition of act book, I can see where it has been clearly spelt under section 194c that liability to deduct arises only when the turnover exceeds 1 crore whereas now the same has been removed. it means there's no threshold limit. this is my opinion

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