TDS for payments to vendors by proprietorship

TDS / TCS 2629 views 6 replies
I have a proprietorship firm as client who are not yet covered under auditing provisions, is it compulsory for them to deduct TDS on payments made to their vendors?

please reply it's urgent!
Replies (6)

An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him does not exceeds the monetary limits under Clause (a) or (b) of Sec.44AB during the preceding financial year shall not be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.

But other than that like TDS u/s. 192 for salary payment TDS will be applicable

thanks for the quick response

My Pleasure......

My Dear Dhirajlal Rambhia Sir.,

Thanks for above said Clarifications... One more doubt...

 

Why the deduction is allowed (above said way) U/s 192 for salary...?

For TDS u/s. 192, 195 etc. the exemption for non-deduction of TDS is not allowed......... Even non-auditable individuals are required to deduct TDS when exceeded the limit. That is Governmental policy, to bring more and more persons under the net.

Dear Sir,

I am a Proprietor (under Proprietorship) and provide staffing services to my customer. The staff is primarily software professionals. 

1) I depend on the staff from another Proprietor(who can be termed as a Vendor for me). I wanted to know how much TDS should be deducted by me before paying his dues. Since he charges me for the staff that provides me, I owe him the monthly fee for all the staff that provides me. 

2) Apart from depending on vendor parter. I have few staff directly hired for short term and they work as contractors for my customer. How much TDS should be charged in this case when I pay the monthly salary to them.

3) Is there any difference in the way TDS  (% of tds) is treated if 

               (a) I treat them as my employees and pay them direct salary

              (b) I treat them as temporary contractors and they raise an invoice to me at the end of the month before I                    disburse their salary also referred as fee in this case.

My email is: enbizglobal @ gmail.com


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