Tds deduction on capital expenditure

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2017 Dear Experts,
we are going to made Rs. 40000 toward repairing of machinery. pls clarify will 1% TDS u/s 194C be attract if the expenditure of capital nature?

regds
Aman

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 May 2017 TDS is attracted irrespective of whether the expenditure is capital or revenue.

Expert : Anonymous

Expert : Anonymous (Expert)

10 May 2017 Agreed with Seetharaman

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2017 Dear Experts,
normally if we don't deduct TDS then 30% amount of that expenditure will be disallowed... but pls tell me in case of capital nature expenditure if we don't deduct TDS then what would be consequences will 30% of capital expenses be disallowed means we can capitalised only 70% part of expenses.....

Pls clarify.....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 May 2017 Capital expenditure will not be disallowed. But you will be asked to deposit the TDS amount with interest and penalty by issuing notice.

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