TDS ON FREIGHT SECTION 194C

Save Share

This query is : Resolved

Ritin Kharbanda (Querist)

05 August 2009 one of our client didnt deduct tds on amount of freight of machinery from new delhi to amritsar by road and the amount paid is debited to machinery a/c.
what is the penalty for non deduction of tds?

thanx

Ram Avtar Singh

Ram Avtar Singh (Expert)

05 August 2009 TDS not applicable up to 20000/=
If freight charged in Invoice TDS libility to payer of Expns.
Kindly clear the matter

Ritin Kharbanda

Ritin Kharbanda (Querist)

05 August 2009 the amount of bill is Rs.40000/- and the client has debited the amount of freight to plant and machinery a/c.

i knw that there is liability to deduct tds, what i wnt to knw that what is the penalty for non deduction of tax in this case?

Ram Avtar Singh

Ram Avtar Singh (Expert)

07 August 2009 expenses are disallowed (u/s 40(a)(ia)) in case tax has not been deducted at source, there can be no ground for levying penalty u/s 271 C at the time to prescrived by law.

when its disallowed itd conpany income 35% income tax with interest & penality should be charge on that amount.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now