Disallowance

This query is : Resolved

shinitha (Querist)
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15 June 2013 whether servicetax paid is debited in the profit & loss a/c is disallowed ? if yes under which section?

whether Tds paid debited is disallowed ?
(Actually this firm is not collecting any tds from payment. so tds collected not in their a/c. They just paying Tds to avoid disallowance of expenditure.)

waiting for reply

thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 June 2013 If service tax collected is routed through P & L a/c, payment is allowable. Like wise, if there is no collection and payment is shown in P & L a/c, it is an allowable expenditure.

If TDS is paid without collection, the entire expense will be disallowed u/s 40(a)(ia) and TDS paid amount will be allowed since it is not debarred in any section.

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