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Depreciation

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This query is : Resolved

pradeep (Querist)

10 January 2011 My client has done furniture and fittings in the office, and has paid him cash for the entire amount of Rs.140000/- in 4 Installments and it also includes 31000/- labour charges.The bill is in normal paper giving the detail of expenses and thereby paymnt is made

My question is
1) whether dep will be allowable under IT Act on ? Since Cash is paid for FA?

2) Whether TDS needs to be deducted on 31000 or the whole amount ?

3) whether companies act contain any provision for FA regarding cash payment?

Pls answer this query with reason.

CA Nitish Jain

CA Nitish Jain (Expert)

11 January 2011 TDS is required to be deducted on 31000/- if separate bill is available. if separate bill of labor is not available, no TDS is required to be deducted.

pradeep

pradeep (Querist)

12 January 2011 sir,
can u give me any strong reason for not allowing the depreciation under IT act,and if u have any supporting case law then pls provide me for the same

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