Hi Firends,
FY:2009-2010 is first year for my propreitory firm.
I want to know whether i need to deduct TDS from the professional services fees.
I heard in the first year of the firm TDS is not deducted, is that true?
If not, then what will be the TDS applicable?
Await your reply.
Regards,
Anant
If your Turnover exceeds Rs. 40 Lacs in the year i.e. you are liable to Tax Audit, then you are bound to deduct the Tax (TDS). And if the amount of Professional Fee exceeds Rs.20000 for the year, you have to deduct the Tax.
Individual or HUF are not liable to deduct the tax at source u/s 194J (Fees for professional or technical services) if such Individual or HUF was liable to get the accounts audited u/s 44AB in the immediately preceding year.
hence, in the first year the individual is not liable to deduct tax at source from fees to professional.
TDS provisions are not applicable on Individual and HUF unless they are req. to get audited under section 44Ab in previous year . since it u r first year TDS provisions are not applicable on You. and above procedure will have to apply on yearly basis
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