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Reporting of TDS unpaid till ITR filing FY 2018-19

Rahul Rustagi (Student CA Final ) (310 Points)

11 April 2020

If TDS payable U/s 194C amounting to Rs 75,000/- was unpaid till date of furnishing of ITR for FY 2018-19. Whether it is correct to report the said amount under Point No 26 of Tax Audit Report where it asks for the expenses referred to in section 43B (Expenses which are incurred during the year but not paid till ITR filing date)

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (127580 Points)
Replied 11 April 2020

The TDS payable amount is not expenditure. It's must be pay before filing of ITR...

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Rahul Rustagi (Student CA Final ) (310 Points)
Replied 11 April 2020

But what if the amount is not paid till ITR filing date. I don't think it should be reported under section 43B in Tax Audit Report ( I have seen and asked various professionals that generally TDS is reported under point No 26 in TAR and if the amount is unpaid till ITR filing, this would lead to 100% disallowance instead of 30% disallowance).

Pawan Vemula (284 Points)
Replied 11 April 2020

Yes Sir You Have To Compalsary Report The Expense Details In Point No 26 & The Expense Will Be Disallow To Your P&L A/c

RAJA P M ("Do the Right Thing...!!!") (127580 Points)
Replied 11 April 2020

Yes... The TDS related Expenditures is disallowed. Then the TDS not required to pay...

Rahul Rustagi (Student CA Final ) (310 Points)
Replied 11 April 2020

Pawan ji, as per my opinion only the amount incurred referred to in Section 43B are to be reported in the point No 26. Why the expenses on which TDS is liable to be deducted be reported under this point. TDS is not covered under section 43B.

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Pawan Vemula (284 Points)
Replied 11 April 2020

Any sum payable by the assessee by way of tax, duty, cess or fee, (by whatever name called, under any law for the time being in force

Rahul Rustagi (Student CA Final ) (310 Points)
Replied 11 April 2020

Pawan ji, if any TDS payable say Rs 75,000 is that sum payable by the assessee by way of tax, duty, cess or fee, then on the payment of the same we should be claiming the expense. In this case 75,000 is that sum which has not been paid in the FY 2018-19 but paid in FY 2019-20 and the same should be claimed as expense which is gonna be disallowed in any case since TDS cannot be claimed as an expense.
Under this clause 100% of the amount shall be disallowed whereas only 30% should be disallowed.

Moreover, there are other points which cover the reporting of TDS payable so why this should be specifically covered under this point 26.

RAJA P M ("Do the Right Thing...!!!") (127580 Points)
Replied 11 April 2020

@ Mr Rahul Rustagi.,

Understand that Expenditure which is related to TDS amount...

In case You deduct TDS for labour charges Rs. 100000/- @ 2% = 2000(tds). Then you will shown the table Rs 100,000/- not for 2000...

Are You understand now...
If Yes...
Disallow the expense amount which is related to the TDS Rs 75000