Tds deduction

TDS applicable is section 194C.

As per this the rate of TDS is applicable @ 1% for Individual (Propreitory concerns) and HUF & for others (partnership firm or company) its 2% - AY 15-16 / AY 14-15 if amount per bill exceeds 30000/- or yearly it exceeds 75000/-.

Scenario when TDS will not be deducted.

Deductor may not deduct TDS as the transactions with you might be below limit.

Deductor if individual / HUF and tax audit not applicable to them then they are not liable to deduct TDS at all.

Hope I have answered your queries.

Thank you so much sir. By seeing your answer one more question raised. You told that if the firm

turnover is not under tax audit (i think below 1 crore), is TDS will not applicable for any type like interest, rent, professional fee. Plz clarify sir

Hi ,

It is the liablity of the payer to deduct tax at source and not liablity of the reciever, if your customers are deducting tax or not is not matter of concern for a reciever. All you can do is take credit of tds which is coming in 26 AS. You have to book sales irrespective of TDS deducted or not. Until and unless sales appering in 26 AS and sales as per your return is matching you will not be held liable for either tax deduction at different rate or non deduction.

While you are paying to your creditors i.e suppilers then only you have to bother about rates as specified by Jignesh . 

The reasons given by Jignesh are spot on i would like to add the above statement made by me in addition to clarfication given by Jignesh.

Originally posted by : mmrao
	Thank you so much sir. By seeing your answer one more question raised. You told that if the firm turnover is not under tax audit (i think below 1 crore), is TDS will not applicable for any type like interest, rent, professional fee. Plz clarify sir

For Firms - TDS deduction is compulsory - where firm is deductor.

If firm is deductee - then if deductee is company or firm then TDS deduction compulsory

If firm is deductee - then if deductee is Ind or HUF then TDS deduction is compulsory if HUF and IND were liable to tax audit in previous financial year.