Dear Friends,
According to Act, all individuals/HUFs whose total sales turnover exceed Rs 40 lakhs during a financial year the immidiately preceding financial year are liable for deducting TDS..
Whether partnership firms are covered under the definition of 'Persons' ?
& likewise whether the sales TO limit for TDS application of Firms is same Rs 40 lakhs?
Mr.Indudhar
As far as provisions under chapter XVII are concerned, partnership firms are covered i.e. as per the prevailinging provisions of each section a partnership firm is liable to deduct tax at source irrespective of the fact that the said firm is liable to get its accounts audited as per the provisions of section 44AB.
Firm is coverred under the definition of 'person' under sectin 2(31).
Best Wishes
Sathiknda
hello
40 lakh limit is for individual nd huf ...... partnership fim is always liable to deduct tds
As per the provisions of the Act, Companies, firms and those persons who are required to get their books audited u/s 44AB of the Income Tax Act, should deduct the tax at source. Therefore the Companies and Firms has to deduct tax at source, irrespective of their TO limit.
Sathikonda Anumanchipalli, Yashpreet and Sandeep are dead right
Irrespective of the TO the firm has to deduct TDS
CAclubindia
