Sec 40a(ia)

This query is : Resolved

Rahul Jindal (Querist)
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27 July 2013 Assessee deduct the tax of payee and paid to the govt but does not recover such tax from the payee.
Whether in the above situation is there any disallowance applicable U/s 40a(ia)

Please provide some material or cases judgement which support ur opinion

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 July 2013 It depends upon the treatment of the TDS amount so deposited. Means -to whom you are debiting the amount ?
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If the said amount is irrecoverable from the deductee you can debit it to Capital.
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Expenditure is allowed when TDS amount is deposited. It is sufficient if you deposit the tax and do not claim TDS amount so deposited -as an expenditure.
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