Interest on vehicle loan to nbfc
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 November 2014
we have paid interest on vehicle loan to NBFC without deducting the TDS, is there any exemption for non deduction of tax pls advise. Can assessing officer disallow this expenditure for nonpayment of TDS. pls advise how to tackle this issue
11 November 2014
1)In such cases we need to pay TDS from our pocket after filing of tds return if you provide tds certificate to NBFC they will will re-imburse it to you.
2)Yes,AO will disallow this expence if tds not done.And auditor also need to disclose the same in clasue 34 and clause 21(B)(ii)(A)
3)no need to disallowed if satisfies as below
.
.
The FINANCE Bill 2012 has proposed to amend section 40(a)(ia) of the Income-tax Act to provide that disallowance of business expenses payable to resident payee due to non-deduction of TDS will not be made if the payer is not considered as an “assessee in default” under first proviso to section 201(1). As per first proviso to section 201(1), a payer who fails to deduct TDS from the amount paid to a resident or on the amount credited to the account of a resident shall not be deemed to be an “assessee in default”, if such resident:
(a) has furnished his return of income under section 139;
(b) has taken into account such sum for computing income in such return of income; and
(c) has paid tax due on the income declared by him in such return of income
and the tax payer furnishes a certificate to this effect from an accountant in such form as may be prescribed. In such a case, it shall be deemed that the payer has deducted and paid the tax on the date of furnishing of return of income by the resident payee.
2)Yes,AO will disallow this expence if tds not done.And auditor also need to disclose the same in clasue 34 and clause 21(B)(ii)(A)
3)no need to disallowed if satisfies as below
.
.
The FINANCE Bill 2012 has proposed to amend section 40(a)(ia) of the Income-tax Act to provide that disallowance of business expenses payable to resident payee due to non-deduction of TDS will not be made if the payer is not considered as an “assessee in default” under first proviso to section 201(1). As per first proviso to section 201(1), a payer who fails to deduct TDS from the amount paid to a resident or on the amount credited to the account of a resident shall not be deemed to be an “assessee in default”, if such resident:
(a) has furnished his return of income under section 139;
(b) has taken into account such sum for computing income in such return of income; and
(c) has paid tax due on the income declared by him in such return of income
and the tax payer furnishes a certificate to this effect from an accountant in such form as may be prescribed. In such a case, it shall be deemed that the payer has deducted and paid the tax on the date of furnishing of return of income by the resident payee.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- Transporter Declaration form
- Copyright software
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Multiple trade mark
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
