Respected Members,
I’m a contractor supplying labour to builder since two years, but my turnover never crossed the audit limit before, but this year the turnover has crossed the limit due to supplying labour and material, but I have not deducted any TDS from those contractor whom I have out sourced the work after taking it from the builder, and also not deducted any TDS from my Employees.
My question is, whether it is necessary for me now to deduct TDS and pay to government or not?
I got this information from internet that.
No TDS by Individual /HUF in First year of Operation of business in any case:A sole proprietor or an individual is supposed to deduct tax under sections 194A, 194C and 194J if his books of account are required to be audited under section 44AB in the immediately preceding financial year.
So no Tds is required to be deducted in First year of Business by Individual /HUF as there is no preceding year and books of account are not required to be audited under section 44AB in immediately preceding year.
Even my wife is also doing the same business but her turnover is less than to audit limit and this is her 2nd year business, and the question is whether she is liable to pay TDS as she has out sourced her contract work to other contractors and as useall not deducted any TDS.
As we both are having VAT, TAN, Service Tax, PT Registration and already paid VAT, Service Tax and Professional Tax.
Please suggest us what is the right thing that we have to do on this.
Your valuable and early suggestions are highly appreciated.
Regards
Namdeo
CAclubindia
