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Accounts -TDS(consequence)

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This query is : Resolved

Swati (Querist)

14 September 2009 In case of Pvt Ltd Company, Labour Charges were paid(to another Ltd Co.)But TDS was not deducted at all . amount of payment was above Rs. 20000/-.
Now this exps was capitalised.
Wat will be the cosequence of non deducting the TDS???? under wat SEction under Income tax Act 1961???
Will the depreciation claimed for the same be disallowed.????
Is there any penalty or interest applicable.
If we claim it as expense will it be fully disallowed ???????.

Urgent????

C.A.Harish Singh

C.A.Harish Singh (Expert)

19 September 2009 cosequence of non deducting the TDS :-

1- Company will deemed as assessee in default u/s 221.
2- Leavy of penalty u/s 221 equal to amount of TDS not Deucted.
3- Interest u/s 201(1A) 1% per month or part of the month from the date of amount is deductable up2 the date of amount of TDS deducted.

if it is capatalized dep. can be disallwed on it and if it is debited as exp. it will be disallowed.

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