A person crosses the turnover limit of 40.00 lacs in February 2009. what shall be his TDS liability with respect of payments already made , which now fall under the ambit of TDS section 194. What shall be his position for part payments made earlier, when the balance payment left is not sufficient to cover TDS amount. Sunil Agarwal , Kolkata
First of all note that the condition of 40 Lakhs turnover is only for Individual and HUF . While the question is very much raises a valid point, thankfully the law makers have taken care of such situationhat is the reason , for this reason , the law makers have put that the condition that if turnover is 40 Lakhs in financial year preceding the financial year in which sum is credited or paid. For example , 194C (K ) is given below
(k) any individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, other than those falling under any of the preceding clauses], whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited or paid to the account of the contractor,
So, in the year when he actually reached the 40 Lkahs turnover , he may not be required to deduct the tax at source , but next year even if turnover is less than 40 Lakhs ,he is required to deduct the tax at source.
So, as far as , your question is concerned, no TDS is required to be made if the turnover in preceding year was not 40 lakhs. If it was,, assessee had to deduct the tax from beginning. There is no scope of confusion.
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