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TDS Return

What is TDS ?

TDS (Tax Deducted at Source) is an indirect system of deduction of tax according to the Income Tax Act, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee.

A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you..

who is Required to file tds return

It is the duty of the person who is making payment to someone for specified goods or services to deduct TDS and file TDS return. The specified payment includes salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. The person who deducts TDS is called deductor and the person whose tax is being deducted is called deductee.

TDS is not required to be deducted by Individuals and HUF except for those whose accounts are required to be audited u/s 44AB i.e. whose gross receipts in preceding financial year in case of business is more than 2 crore (AY 2017-2018) or 1 crore ( AY 2016-2017) and in case of profession 50 lakhs ( AY 2017-2018) or 25 lakhs (AY 2016-2017).

What is TAN and is it Required to file TDS Return?

TAN is an alphanumeric 10 digit number required by a person who is liable to deduct TDS and file TDS return. Thus such person must make an application within a month of deducting TDS for allotment of Tax Deduction and Collection Number (TAN) in Form 49B. This number allotted is mandatory to mention in all TDS Certificates issued, returns, challans etc. If a person fails to apply for TAN he may be penalised up to Rs. 10,000/-.

What are the features of this scheme?

  • This scheme shall cover all those enterprises which have been registered with NSIC through Single Point Registration Scheme.
        But this scheme shall not cover those units which have been engaged in trading activity.
  • This scheme provides a security deposit on back to back basis.
  • With the registration in the scheme, they will help in issuing tenders set i.e. free of cost
  • The units registered under this scheme shall be exempted from paying earnest money deposit.

What is the eligibility criteria to register under this scheme?

  • All those enterprises whether micro or small registered with Director of Industries/ District Industries Centre are eligible to
        register under Single Point Registration Scheme of NSIC.
  • Micro and Small Enterprises those have been in existence for less than 1 year but have commenced their
        commercial production to such enterprises registration shall be granted up to limit of ₹ 5 Lacs, which shall be valid for a period     of 1 year.

What is the registration Procedure?

  • For registering under this scheme the enterprise shall file an application along with the requisite fees.
  • A duplicate copy of the application form will be forwarded to the concerned inspecting agency requesting for carrying out the     technical inspection.
  • After the technical report has been received by the NSIC it shall issue a registration certificate.

What are the documents required for registration?

  • Details of plant & machinery i.e. the date of purchase, the original value of the asset.
  • Ownership Documents that should be self-attested.
  • Declaration from the Proprietor/Director that they do not have any connection with the large-scale unit.
  • Banker’s Report regarding the financial status of the applicant.
  • List of finished goods and the raw material.
  • Copy of the Pan Card.
  • Audited Balance Sheet, P&L, Trading Account.
  • List of places or cities where the services shall be available.
  • Items for which registration is available