TDS under section 194M

[gvenugopal g]

Sirs,

Good Morning! Have a pleasant and productive weekend!!

Kindly let us know whether TDS under (newly introduced in FY 2019-20 and w.e.f.1st September' 19) section 194M is applicable to a person/entity already having TAN and his/their account is audited under section 44AB?

[KASTURI SETHI]

Respected Querist,

Pl. go through the below website link

https://www.charteredclub.com/tds-on-payment-made-by-individuals/

Everything is clear.

[DR.MARIAPPAN GOVINDARAJAN]

If the person/entity is other than the persons who are liable to deduct tax 194C, 194H and 194J then only he is liable to pay deduct tax under section 194M. You may decided accordingly.

AI Summary

TDS under section 194M applies where payors not covered by 194C, 194H or 194J must deduct tax. The operative rule is that Section 194M imposes TDS on payors making specified payments to resident contractors, professionals, or commission agents, but it applies only to payors who are not already required to deduct tax under the existing withholding provisions for contract, commission/agency and professional payments; accordingly, a person or entity subject to tax audit under Section 44AB must determine whether they are excluded because they are liable under those other withholding provisions.