Tax not deducted at source whether allowable or not


This query is : Open 

29 September 2008 A contractor has made a payment to sub-contractor without deducting tds on payment. Whether he claimed a expenditure or not.

29 September 2008 Expenditure can be claimed if payments made by cheques but liability of TDS will accrue in future IT assessment.

29 September 2008 No, as per section 40(1a)if TDS is not deducted or if deduted not paid within due date then the expenditure is not allowed. It is allowed in the year of payment of TDS.

29 September 2008 I agree with Sanjay

Raman R (Expert)
30 September 2008 Yes, what Sanjay has stated is correct. The expenditure will be allowed only on payment of TDS.

01 October 2008 I too agree with sanjay varma.....

03 October 2008 Sanjay Verma position is the correct position

29 April 2009 This amendment has come from 01.04.2006 vide finaance act 2006 before that this was not applicable. So expenditure in your query after the stipuleted period will be allowed only in the year of payment of TDS.


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