TDS PROVISION

[giri gattupalli]

respected sir one of my claint (civilcontractor) turnover or gross receipts during fy 2018-19 (ay 2019-20) is 1,20,00,000 (one crore twenty lakhs) and filed assessment under sec -44AD .and during fy 2019-20 (ay 2020-21) his gross receipts are 1,90,00,000 (one crore ninty ninty laks ) and i want to file assement under sec 44AB tax audit this year . my problem is he made payments to subcontractors amounting to rs 1,00,00,000 (one crore) during fy 2019-20 .please discuss whether he is liable to collect TDS from subcontractors or not

thanking you

giri tax consultant

AI Summary

Tax Consultant Seeks Clarity on TDS Applicability for Civil Contractor with Rising Gross Receipts; Section 44AB Audit Planned. A tax consultant inquired about the applicability of TDS provisions for a civil contractor client whose gross receipts increased from INR 1.2 crore in FY 2018-19 to INR 1.9 crore in FY 2019-20. The client made payments of INR 1 crore to subcontractors in FY 2019-20 and plans to file under section 44AB for tax audit. One respondent suggested that TDS should be collected if direct payments are made to subcontractors. Another indicated that TDS deduction depends on whether the subcontractors have provided their PAN details.