Accountancy Forum

Dear friends, i have one questions about with-holding agent.

Budget 2010 announced that any individual having turnover above Rs. 50 Million become a with-holding agent.

The definition of turn-over u/s 113(3)

3) “turnover” means,-

(a) the gross receipts, exclusive of Sales Tax and Federal Excise
duty or any trade discounts shown on invoices, or bills, derived
from the sale of goods, and also excluding any amount taken
as deemed income and is assessed as final discharge of the
tax liability for which tax is already paid or payable;

(b) the gross fees for the rendering of services for giving benefits
including commissions; except covered by final discharge of
tax liability for which tax is separately paid or payable;

© the gross receipts from the execution of contracts; except
covered by final discharge of tax liability for which tax is
separately paid or payable; and


IF ANY ONE SERVICE PROVIDER AND TURNOVER +50 M IN TAX YR. 2010.
ALSO ALL RECEIPTS SUBJECT TO WH TAX @ 6%.

Now my question is when my all receipts covered by final discharge of tax liability for which tax is separately paid or payable. it means my turnover for becoming WH Agent is zero.

Please guide me "Limit of 50M for becoming WH Agent is applicable to me or not.

Thanks

urgent reply very appreciated.

Jab ap withholding agent hoty han to ap dosry person ki income par tax withheld karty han apni income par nahi,,,

Is waja say ap ko sirf ye daykhna hay k ap ka turnover 50 million say zayada hay ya nahi, agar zayada hay to aap withholding agent hon gay warna nahi,,,,,, withholding agent bany ya na bany say aap ki income ki nature ka koi taluk nahi hay k wo normal income hay ya FTR ki,,, sirf turnover dayka jaye ga k 50 million hay ya nahi.

Turnover for the purpose of being with hoding agent has no concern whether your income is subject to FTR or not. Your all invoices though covered by final discharge, will be added in calculating your turnover.

Point which may be confusing you is this, in above defination, turnover is for calculating your tax liability. And ofcourse the invoices which are subject to fianl discharge must be excluded. But it does not mean that it was not your income, their exclusion is just to avoid double counting as you do not have any tax liability in respect of those invoices.

Thank you 4 answering.

Can you advice me if my turnover in tax year year 2010 was 60M and filed return normal base (not final return). pl. advice carefully else i am following prescribe person for with-hold tax from parties bills?

Or in tax year 2011 (from 01-07-2010) do i liable to deduct tax from all payment paid u/s 153?

if your answer in yes. then what should i do at this stage where i cannot withhold or deduct tax and paid full amount to parties.


your reply must be appreciated. boss
thanks