THE ASSESSEE IS AN AOP WHOSE GROSS RECEIPTS ARE NOT ABOVE 1CRORE. HE MAKES PAYMENT OF RS.30 LACS TO A HOTEL IN HYDERABAD FOR ORGANISING AN EVENT BUT HE HAS NOT DEDUCTED ANY TDS ON THIS PAYMENT.
THE QUESTION IS WHETHER AOP'S ARE LIABILE TO DEDUCT TDS ON EVERY TYPE OF PAYMENT MADE FOR EXPENSES ABOVE 20000?
OR THE AOP HAS TO APPLY FOR TAN & DECDUCT TDS.?
individual , H.U.F , A.O.P OR B.O.I will be deducted tax if they liabel to 44AB Tax audiit.
in your case it is not liable to deduct tax and no need to apply for T.A.N
1. TDS over any contractual work is deducted u/s. 194C
2. As per explanation under (i) (l) under the section 194C.... (see attachment)
(l) any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person,—
(A) does not fall under any of the preceding sub-clauses; and
(B) is liable to audit of accounts under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited or paid to the account of the contractor
So, the AOP also gets exemption u/s. 194C, provided no tax audit liability in preceeding year.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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