Tds of client borne by the assessee

This query is : Resolved

CA Ritu Chauhan (Querist)
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26 August 2014 If the assessee bears the amount of TDS & does not deduct the same from the amount to be paid to his client i.e pays the TDS from his own account. Will this be disallowed ? If yes then under which section & how should I report this in form 3CD ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 August 2014 as long as you are grossing up the amount, there is no disallowance.

Rupesh Jain

Rupesh Jain (Expert)
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26 August 2014 you can claim in respective a/c exp. of capitalized.

CA Ritu Chauhan

CA Ritu Chauhan (Querist)
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26 August 2014 It means if the expenditure is Rs. 100,000/- & assessee paid entire Rs. 100,000/- to his client, also he has paid TDS of Rs. 10,000/- to Govt. Whether assessee can claim as deduction Rs. 110,000 (including TDS separately paid & borne by the assessee) or only Rs.100,000/- ?