Turnover for TDS under section 194J applicable when?

TDS 1314 views 4 replies

aman gupt

FPS

49 Points Joined June 2009

Hi All,

I have a query regarding deduction of TDS U/S-194 J.

There is a firm providing technical services which has started its operations with effect from December 2010. As per section 44AA, a firm is required to maintain its books of accounts if its turnover in the previous year exceeds Rs. 1,50,000/-. So what approach should the firm adopt for tds deductions in respect of payments made to consultants hired under the following two scenarios:

a) When the turonver of the firm exceeds Rs. 1,50,000/- in the financial year

b) When the turnover of the firm doesnot exceed Rs. 1,50,000/- in the financial year

Or revenue has no link as to deduction of TDS under any section.

Any information would be of great help.

Thanks in Advance.

Aman

Replies (4)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

no TDS in 2010-11,

firm is required to get audited in previous year to deduct TDS, as the firm has started in dec 2010 only, no tds deduction needed.

aman gupt

FPS

49 Points Joined June 2009

Dear Mr. Sharma,

Thanks for your reply. Kindly clarify as it is stated under section 194 J that no individual or HUF whose accounts have noot been audited under section 44AB are not required to deduct TDS. There is no specific mention in case of a firm.

Regards

Aman