Relation Expenditure Capital Nature to Not deducting TDS

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Sagar Ingle

Sagar Ingle (Querist)
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04 May 2020 Why is the capital expenditure for acquiring the Assets not subjected to TDS?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 May 2020 No TDS applicable on purchase of either capital or revenue assets.
TDS applicable on capital or revenue works.

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Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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05 May 2020 The main concept behind is that TDS needs to be deducted on one's income. If we are purchasing an asset it is not an income for us. If we are paying someone which is in the nature of income to the recipient TDS needs to be deducted subject to limits and applicability as per Income Tax Act.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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05 May 2020 Capital expenditure involve technical know-how or construction of building pertain to business which involves service needs to be deducted tds if treshhold limit exceeds limit.

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