TDS on Catering Services Security and House keeping services

Hi Experts

I am dealing accounts of a House keeping and Security Services which is a proprietor entity.
We are taking catering services.As on date Rs 150,000 is accounted in books but not yet paid
is it require to deduct TDS u/s 194 C
Ours is a Startup proprietor entity
Please advise
Thanks in advance
Replies (3)
Quick Summary
This discussion clarifies the Tax Deducted at Source (TDS) obligations for a startup proprietor entity providing housekeeping and security services, which also uses catering services. The initial query concerns whether TDS under Section 194C is applicable to catering services. Experts advise that TDS liability typically arises if the entity is liable for tax audit under Section 44AB in the preceding financial year. For a new business, TDS is generally not required in the first year of commencement, but it will become applicable from the subsequent year after the current financial year's audit.

Yes, if the proprietor is liable to deduct tax, i.e. if the entity is liable for tax audit u/s. 44AB in immediately preceding AY.

Thanks for Reply @ Dhirajlal sir
Entity business starts from 25.04.2022. there is no business/tax returns for previous financial year
Current financial year turnover is expecting 6 crores
please advise accordingly
Thanks

No liability to deduct TDS in first year of commencement. But after audit of the current FY, i.e from next year, liability to deduct TDS will arise.

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