40A(3)
This query is : Resolved
27 April 2009
Sir, I want to know what would be implication if TDS is properly deducted on cash payment which was in excess of 20000 limit....
And if it is allowed than which circular or notification allows this.????
Thanks in advance....
And if it is allowed than which circular or notification allows this.????
Thanks in advance....
CA. B.SRINIVASULU
(Expert)
27 April 2009
If you pay any expenditure above 20000 in cash irrespective of the fact that you have deducted tds or not the amount will disallowed. You can refer ammended section 40A(3).
27 April 2009
thanks sir......
May I ask one more thing that in case of import purchase if any interest is paid to foreign party than r we liable to deduct TDS u\s 195.... considering "India Piston LTD" Case
May I ask one more thing that in case of import purchase if any interest is paid to foreign party than r we liable to deduct TDS u\s 195.... considering "India Piston LTD" Case
CA. B.SRINIVASULU
(Expert)
27 April 2009
Yes. You have to deduct tds either follow section 195 of income tax act or refer to Double taxation avoidance agreement with that country and deduct the tds as per that. If you pay without deducting tds then the entire expenditure will be disallowed.
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