Tds

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kunal (Querist)
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04 January 2013 sir,
if we capitalize labour expenses in building then is it compulsory to deduct TDS ON LABOUR EXPENDITURE??

Guest

Guest (Expert)

04 January 2013 To capitalize or not is an issue from accounting & financial reporting point of view. Taxation shall remain unaffected with the treatment given in books. So TDS shall be deducted & deposited as usual.

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Pankaj Gupta

Pankaj Gupta (Expert)
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04 January 2013 I do agree with the expert. Tds should be deducted.

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kunal

kunal (Querist)
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05 January 2013 sir, if we capitalize the amount of labour charges in building
& forgot to deduct tds on labour charges
is disallowance u/s 40 a attracted??

as u/s 40 a
disallowance of expenditure is only respect of income chargeable u/h pgbp

Guest

Guest (Expert)

05 January 2013 TDS is to be deducted on amount paid / credited irrespective of whether you capitalize the amount or charge it to revenue. The IT Dept is concerned with collection of tax, thats it.

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