TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2011 TDS PAID BY A FRIM ON BEHALF OF CONRACTOR .
WHETHER THIS WILL BE A ALLOWED OR DISALLOWED EXP. GIVE US THE REASON.

CA Navin Jain

CA Navin Jain (Expert)
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03 May 2011 IF TDS PAID BY FIRM ON THE BEHALF OF CONTRACTOR, THEN EXP WILL BE ALLOWED

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2011 ATUALY IS NOT ON ITS BEHALF AS THIS TDS PAID WILL NOT BE GIVEN BY CONTRACTOR TO COMPANY AGAIN

CA. Deepak Narula

CA. Deepak Narula (Expert)
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03 May 2011 TDS paid out of pocket then expense cant be claimed in PGBP. It has to be deducted from the expense paid/debited itself.

Better do the reverse calculation and take the TDS paid also as expense.

Example: Bill Rs. 1000000. Calculate TDS @ 1% like = 1000000*1/99 = 10101. Pay TDS Rs. 10101 and claim expense at gross amount at Rs. 1010101. But make sure that contract price is revised at Rs. 1010101.

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