25 June 2011
Tax deducted & paid after due date as prescribed in chapter XVII for eg tax deducted on 31/3/10 deposited on 7 july 10 so the date of deposit is not as per chapter XVII.
NOW COMING TO SEC 40a(ia) THE ABOVE EXPENSES WILL NOT BE DISALLOWED B/C TDS DEPOSITED BEFORE DUE DATE U/S 139(1)
NOW WHETHER I HV TO REPORT ABOVE POINT IN PT NO 27 OF 3CD
25 June 2011
ANY DEFAULT AND VIOLATION HAS TO BE REPORTED It is before the due date of filing of return. If there is tax audit then the due date of filing of Return is 30th September and if payments are made before due date then the same is not to be disallowed. Now, the problem is when the Tax Auditor will sign and report the violation if the payment is to be made on or before the due date of filing of return because tax audit report is ready 15 to 20 days before the due date of filing of the return.
in pt no 27 of audit report those items r to be reported which do not comply with the provisions of chapter xvii.
suppose for the month of feb tax must be deposited till march seventh but if tax is deposited after 7/3 but before 30/9 then such exps wil not be disallowed as per sec 40a(ia) but it's a non compliance under chapter xvii read with rule 30.....
CAclubindia
