Prakash Tiwari (Comercial Executive) (56 Points)
16 October 2012Dear all,
We have a Individual Tea Supplier , he daily prepare & supply tea to our worker. monthly billing under Rs. 15000-19000. he is not registered supplier. he is financially very low category person and we are the only one customer of him.
Currently we are not deducting Tds for him, but our auditor raise the question for TDS applicability. Please guide in this case what we can do??
Thanks,
Prakash Tiwari
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 16 October 2012
If the tea supplier does not corss the basic exemption limit not chargeable to tax, then any paymetns made to him will not attract the TDS provisions. Moreover the indivual/HUF should be liable to ge their books of account audited u/s 44AB of the I-T Act if turnover crosses the 1crore mark.
Hence if the above conditions are not satidfied then TDS need be made. However the tea supplier should suppy the certificate to you for No-Deduction of tax at source. Else tax needs to deducted & the tea supplier will have to claim refund of TDS.
Whatever it may be the category of person, there is a legal responsibility on you to deduct as the law is being evoked. It is the responsibility of the tea supplier to act for it not to be deducted.
Otherwise just consider the amount being paid as amount after TDS is deducted and just pay off 1% inorder to get the allowance of expenditure.
Regards,
Santosh V. Thakur
(Sr. Accountant)
(187 Points)
Replied 17 October 2012
@ Mr.Sai,
when we treat as Contract of Tea supplier,.Kindly clarify the below things.
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