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Tds on individul

TDS / TCS 726 views 4 replies

Dear 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

Replies (4)

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,

@ Mr.Sai,

when we treat as Contract of Tea supplier,.Kindly clarify the below things.

1. for making tea it's includes tea power/milk /sugar (material) then how we can bifurcate Service & material separetely to deduct TDS.
 
Kindly guide.

TDS is deductible on the entire amount. You should not differentiate the cost of material as in service tax.

He will not come into supplier of material as well to exempt TDS on him, as he is processing his inputs.


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