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TDS if covered under 44ae?

TDS / TCS 783 views 3 replies

CA Jignesh Kotak

86 Points Posted on 15 September 2011

DEAR FREINDS,

I WANT TO KNOW THAT IF ONE OF MY CLIENT HAS TWO SET OF BUSINESS :

1 ) CONTRACTOR BUSINESS AND

2) TRANSPORTATION BUSINESS.

HE IS NOT MAINTAINIG BOOKS OF ACCOUNT FOR TRANSPORTATION BUSINESS AND OFFER PROFIT ON PRESUMPTIVE BASIS OF60000/TRUCK/YEAR. AND IN OTHER BUSINESS HE IS COVERED UNDER AUDIT U/S 44AB.

WHETHER HE IS LIABLE TO DEDUCT TDS FROM INTEREST FOR FINANCE OF TRUCKS AS HE IS SHOWING INCOME UNDER SECTION 44AE ?

Replies (3)

C.A SHASHANK GOYAL

Chartered Accountant

362 Points Posted on 15 September 2011

Hi , I am of the opinion that you need not to deduct the Tds while making payment of interest because , I thing that you must have taken finance from any banking company , and as per the provision of section 194A no tds to be deducted while making payment ot banking companies or co-operative societies engaged in banking bussiness and many more .

CA Jignesh Kotak

86 Points Posted on 15 September 2011

NO ITS A FINANCE COMPANY AND THE SAME IS NOT COVER BY EXCEMPTION.

Rajagopalakrishnan R

PARTNER

1434 Points Posted on 16 September 2011

Yes, there is no exemption. But since technically u are not maintaining any books of accounts for the trucking business, the question of TDS should not arise at all in any normal circumstances.