Capital Expenditure

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Devendra (Querist)

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)

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)

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"

Message likes : 1 times

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

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

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