LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Whether to deduct tds or not

arpit (Manager) (247 Points)

28 July 2013

Ours is a partnership firm with turnover of approx 70 lacs... Hence we are not eligible for getting our books audited u/s 44ab...but do we have to deduct Tds on interest payment and payment of professional fees??? Please help.. Thanks

Reply
Follow
Share

11 Replies

Gowtham (Student CA IPC / IPCC) (119 Points)
Replied 28 July 2013

You have to deduct TDS As per Income tax act

CA Deepak Rathore (EXPERT) (281 Points)
Replied 28 July 2013

yes definitely u have too

arpit (Manager) (247 Points)
Replied 28 July 2013

So to conclude all partnership firms have to deduct Tds irrespective whether their books are audited or not.....

sanjay singhal (CA) (987 Points)
Replied 28 July 2013

All partnership firms are required to deduct TDs irrespective of turnover.

Talim hussain (artical) (22 Points)
Replied 28 July 2013

You should deduct TDs

naveen (student) (805 Points)
Replied 28 July 2013

Yes, tds not depends on turnover

Sunil (Trader) (2611 Points)
Replied 28 July 2013

Firms have to deduct TDS irrespective of Turnover. Only Individuals and HUF not subbject to 44AB audit do not have to deduct TDS except for following cases where they too must deduct:-

Salaries

Individual / HUF Contractors paying / crediting to a sub contractor.

Malav (CA Practice ) (11 Points)
Replied 28 July 2013

Yes except partner's interest you have to deduct TDS on payments irrespective of turnover.

(Guest)

Following persons are liable to deduct the tax at source:-

A) All Individuals (Including sole-proprietorship concerns) and HUF, who are not covered under tax audit, shall deduct TDS against all the specified payments except:-

Interest paid
Payment to contractor and sub-contractors.
Commission Paid
Rent Paid
Professional fees and technical fees paid.

B) Individual/HUF who are covered under tax audit, will deduct tax at source on all specified payments.

C) Partnership firms and Companies and persons other than individuals and HUF, will deduct tax at source on all specified payments.

Tax audit: A person is liable to get its account audited u/s 44AB of Indian Income Tax Act, if the gross receipts or gross turnover exceeds Rs.60 lacs during financial year and Rs. one crore during financial year 2012-13 in case of a business and in case of profession the gross receipts exceeding Rs.15 lacs in financial year 2011-12 and Rs.25 lacs in financial year 2012-13.

Note: Payments made by individual/HUF against specified payments, shall not be liable for deduction at source for following purposes:-

Payment to contractor or sub-contractor, exclusively for personal purpose.
Payment of professional fees and technical fees exclusively for personal purposes.
Rent for personal purposes.