Tax Audit 44AB & TDS

[CA AJAY KUMAR AGRAWAL]

1. TDS provisions (in addition to others) are applicable to assesses covered by Sec 44AB also. In case turnover is less than ₹ 1 Crore in any year & he is not required to get accounts audited u/s 44AB, has he to follow TDS provisions?

2. An individual is having 2 shops of whole sale business of spare parts (even he may have 3 or more shops in same line of business or others). One business has turnover more than ₹ 1 Crore & the other has less than ₹ 1 Crore or some business have turnover more than & some have less than ₹ 1 Crore. How tax audit liability u/s 44AB will be decided?

[CA BHASKER SHANDILYA]

Sir,

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An individual is having 2 shops of whole sale business of spare parts (even he may have 3 or more shops in same line of business or others). One business has turnover more than ₹ 1 Crore & the other has less than ₹ 1 Crore or some business have turnover more than & some have less than ₹ 1 Crore. How tax audit liability u/s 44AB will be decided?

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Kindly note that total turnover shall be clubbed together and tax audit shall be conducted on total turnover . Turnover is charged to audit assessee wise not business wise .Even if it would have been company then also we would have "consolidated turnover of all of there businesses .

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TDS provisions (in addition to others) are applicable to assesses covered by Sec 44AB also. In case turnover is less than ₹ 1 Crore in any year & he is not required to get accounts audited u/s 44AB, has he to follow TDS provisions?

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TDS has nothing to do with turnover , TDS means tax deducted bya person responsible for paying any income other then in nature of personal effect . So it is mandatory requirement to deduct TDS whether company has to get its account audited or not , whther it has maintained books or not .

[Ganeshan Kalyani]

Sir, I agree with the views of Sri Bhasker Ji. Thanks.

AI Summary

Aggregation of turnover determines tax audit liability; TDS obligations remain independent of audit or turnover thresholds. Aggregation of turnover across all businesses carried on by a single assessee determines tax audit liability: consolidated assessee-wise turnover, not per-business turnover, triggers the tax audit requirement. Deduction of tax at source is independent of turnover thresholds and audit obligations; TDS must be deducted by the payer where applicable regardless of whether the assessee is liable for a tax audit or maintains books.