Company not deducting tds on rent

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This query is : Resolved

k vineel kumar (Querist)

22 October 2014 Hi my name is vineel kumar i joined as an accounts officer in a private company where i found that our company is not deducting tds on rent paid (23000 pm) what will happen if tds is not deducted. and also making payments more than 15000 per day in cash
thanks in advance

Ganeshbabu K

Ganeshbabu K (Expert)

22 October 2014 Payment to single party perday in any case should not exceed 20,000 if it is exceed than this disallowed to claim the same as expence(Sec.40A(3))

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If rent paid to a party exceeds Rs.1.8 lakhs per year TDS to be done at 10%.

If failed to deduct TDS Expenditure may be disallowed as expence 40a(ia)
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for f.y.14-15 disallowance is restricted to 30% of amount on which tds applicable

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k vineel kumar

k vineel kumar (Querist)

22 October 2014 If payment is made more the 20000 (suppose 35000) to different parties in cash, does the total is allowed

Ganeshbabu K

Ganeshbabu K (Expert)

22 October 2014 In case of payment to transporters upto 35000 is allowed.

yes it is okay if it is paid to different parties

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