Allowability of Testing Charges - TDS not deducted
This query is : Resolved
07 August 2009
One Co. has paid Testing Charges (Expenses) of Rs. 72,000/- without deducting Income Tax TDS.
Whether these expenses are disallowable u/s 40 of Income Tax Act 1961 ?
Whether these expenses are disallowable u/s 40 of Income Tax Act 1961 ?
07 August 2009
its depends what kind of payment is this, if it is an expanse for which contract is required TDS should be deducted otherwise not.
08 August 2009
Testing Charges means Technical Services.
hence, Section 194J is also attracted in this case. Expenses may be allowed in the next Asst year provided TDS amount is deposited on the above. Adjust the TDS amt with the Testing Unit and issue a TDS certificate.
hence, Section 194J is also attracted in this case. Expenses may be allowed in the next Asst year provided TDS amount is deposited on the above. Adjust the TDS amt with the Testing Unit and issue a TDS certificate.
Message likes :
1 times
08 August 2009
TDS is attracted. Non deduction of TDS will attract the disallowance provision.
You may examine whether Sec 194C or 194J is attracted.
194J is attrcted only when the payment is in the nature of fee. If the consideration is in the nature of carrying out any work, 194 C is attracted.
You may examine whether Sec 194C or 194J is attracted.
194J is attrcted only when the payment is in the nature of fee. If the consideration is in the nature of carrying out any work, 194 C is attracted.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Gift of mutual fund units to daughter
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Not able to file ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
