Pakshal Shah (Practicing Chartered Accountant) (271 Points)
02 October 2016
Akash
(CA Final (2nd Group Pending))
(876 Points)
Replied 02 October 2016
He will disallow expenses. He will also levy penalty and interest for non deduction of TDS.
He will also levy penalty for non registration.
Pakshal Shah
(Practicing Chartered Accountant)
(271 Points)
Replied 03 October 2016
Thanks for your revert. Can you tell me whether the following provision applies for AY 2014-15 or not?
According to Section 201(1)
Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident—
(i) has furnished his return of income under section 139;
(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed68:]
Akash
(CA Final (2nd Group Pending))
(876 Points)
Replied 03 October 2016
Originally posted by : Pakshal Shah
Thanks for your revert. Can you tell me whether the following provision applies for AY 2014-15 or not?
According to Section 201(1)
Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident—
(i) has furnished his return of income under section 139;
(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed68:]
Yes this Proviso was added by Finance Act 2012. so it is applicable from AY 2013-14.
CA Rahul Mor
(Chartered Accountant)
(173 Points)
Replied 03 October 2016
as per Finance Act 2015 if you liable to deduct TDS and you have not deduct TDS then 30% of amount on which you require to deduct TDS will be disallowed, the amount 30% will be allowed in those year in which you have actually deduct or deposit TDS.
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