Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2013 Suppose company didnt deduct tds and then at the year end pays tds from own pocket resulting in debit balance in that vendor account, then shall the expenditure on which we paid tds from our own pocket allowed ?? pls urgent and give me some reference.

Preety Chawda

Preety Chawda (Expert)
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18 January 2013 Of course, company can claim deduction of that expense if due TDS is paid alongwith Interest liability to the goverment.

The company can even raise debit note to the vendor and ask for recovery of the TDS which should have been deducted at that time.

As far as interest is concerned it is really difficult to recover back, since interest cost is due to mistake of deductor.