Capital Expenditure

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Devendra (Querist)
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06 January 2011 1)Whether TDS is to be deducted on Capital Expenditure? (For Eg : Rs.50000 is paid to a Labour Contractor for erection of Machinery and the same is capitalized without deducting TDS)

2)Whether capital expenditure can be disallowed?

Regards,
Devendra Kulkarni

Akbar Mirza

Akbar Mirza (Expert)
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07 January 2011 1) If u have capitalised it, then there is no question of deduction of TDS.as we are not claiming it as expenditure in P & L. A/c.

2) It will not shown in P & L A/c, hence no question of disallowance.

VANDANA

VANDANA (Expert)
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11 January 2011 I agree with 2nd point of "AKBAR MIRZA"

But, even if it is capitalized , i think we must have to deduct the TDS , COZ...... In any provision of tds it is not mentioned anywhere that, if we not clamining it as exp in P & L Than can't deduct the TAX,

I think EVEN IT IS CAPITAL EXPENDITURE , as it is a labour chg, we must have to DEDUCT A TAX

" WELCOME FOR ANY OTHER REPLAYS OR ANSWERS"

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 January 2011 I do agree with Vandana, since the expenses capitalised there is no question of disallowance, but while assessment , A.O can raise the demand on penalty for non deduction