09-29-2011, 08:09 PM
If your annual turnover is 4.5 million rupees then relax, you were not bound to deduct tax while making payments.
Relevant s.153.
153(1) says, Every prescribed person making a payment for the sale of goods shall deduct tax.
Who are prescribed persons? Section 153(7) answers this.
clause (h) of s.153(7) Prescribed person means an association of persons having turnover of fifty million rupees.
So any association of person having turnover less than fifty million rupees is not bound to deduct tax at the rate of 3.5%.
Relevant s.153.
153(1) says, Every prescribed person making a payment for the sale of goods shall deduct tax.
Who are prescribed persons? Section 153(7) answers this.
clause (h) of s.153(7) Prescribed person means an association of persons having turnover of fifty million rupees.
So any association of person having turnover less than fifty million rupees is not bound to deduct tax at the rate of 3.5%.
