13 October 2009
I have a proprietory concern which is subject to tax audit for f.y 08-09.during the year we incurred expenses exceeding 50k and also payment exceeding 20k to parties who did labour jobs for us and that too to the extend of 6 lacs and on which we never deducted tds during the previous yar. now we have filed return before 30th sept. what should be our stand now? should we file revised return after paying tds which we should have deducted and paid.if we do so will AO allow the expenditure of 6 lacs. what is the other way out if any for this??? please advice
13 October 2009
If this is your first year where the turnover has exceeds rs.40 Lakhs, kindly check when the turnover has crossed 40Lakhs. It it is before march then you should have compulsority deducted the tds. If the same has crossed during march only then to the extent of payments made upto feb you can claim the expenditure eventhough tds has not been deducted. However on entries passed during march ie journal entries you should have deducted tds otherwise the expenditure will be disallowed. Even if you pay now you are not eligible to claim by filing revised return. the same can be claimed next year only. Please check the treatment given by your ca for disallowances.
14 October 2009
Check your audit report. It must have already been disallowed if labour contracts are exceedings the threshold limits of 194C and tax was not deducted.
I am not sure what do u mean by labour jobs , are these labour contracts u/s 194C or labour expenses sumthing like a daily labour etc ?
14 October 2009
In my opinion, you deduct TDS in current year & you can claim deduction for these expenses in current year. This is the simplest option.
14 October 2009
frist u must file revised return with tds journal entries and next pay the tds with 1% late interest per month. Then expenditure will allowed in next year only but u are in safe position from tds defaulter so Frist u dont see about whether exp allowed in this year or not but must pay immediatly the required tds other wise u must face serious consequences of tds defaults ok
CAclubindia
