sec 40 a
This query is : Resolved
23 November 2009
Mr.A An non resident done some work on behalf of an resident Mr.B. Mr.B did not deducted T.D.S on that work and evenly Pay the amount Of tax from his Pocket than what amount should we consider as payment to Mr.A
Aditya Maheshwari
(Expert)
23 November 2009
Expenses + TDS if grossed up
Aditya Maheshwari
(Expert)
24 November 2009
Suppose tax rate of 10%.
If amount paid by B to A - 90
total amount grossed up of TDS = 90 / .9 = 100
Therefore TDS = 100 * .1 = 10
Total exp= 90 + 10 = 100 to be accounted in the books
Mr. A A/c Dr 100
To Cash / Bank 90
To TDS 10
If amount paid by B to A - 90
total amount grossed up of TDS = 90 / .9 = 100
Therefore TDS = 100 * .1 = 10
Total exp= 90 + 10 = 100 to be accounted in the books
Mr. A A/c Dr 100
To Cash / Bank 90
To TDS 10
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