Tds

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2014 When the assessee had not deducted tax at source on part time salary paid but the remittee had offered complete income to tax in his Return of income, is the expenditure disallowed on account of non-deduction tax at source in the books of the assessee i.e., remittor ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

05 December 2014 yes assessee is liable for int on non deduction of tax

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Ganeshbabu K

Ganeshbabu K (Expert)

05 December 2014 Yes,Exactly such expenditure is allowed in the books of payer.

The above was done by inserting proviso to sub-section (1) of section 201 & to sub-section (6A) of section 206C. In budget 2012
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Notes for you:-

In Budget 2012 CBDT has introduced a provision w.e.f. 01.07.2012 by which a person who has defaulted in payment of TDS / TCS will not be deemed to be a person in default if he furnishes a certificate from CA to the effect that the person in respect of whom default is committed
(i) has furnished his return of income under section 139;
(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:]

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Ganeshbabu K

Ganeshbabu K (Expert)

05 December 2014
Hence if you also taken certificate of chartered accountant in prescribed form (Form 26 A for default in Payment of TDS & Form No. 27BA for default in Payment of TCS)

You can surely make your expences allowed

Difficulties

1)Payee may support or may not support to you to get certificate from accountant

2)By the time your tax auditor issues tax audit report to you if you are unable to complete above formality he may disallow it

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