TDS ON SUB-CONTRACT

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narendra lakade (Querist)
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11 June 2011 MY CLIENT IS ROAD CONTRACTOR AND HE HAS GIVEN SUBCONTRACTOR PAYMENT IN JAN-2011 BYDEDUCTING 1% TDS. HE HAS DEPOSITED TDS ON 10-06-2011, HE IS HAVING TAX AUDIT POVISIONS, IS THE EXPENDITURE OF SUBCONTRACT IS ALLOWABLE IF HE PAID TDS ON 10-06-11, WHICH IS DEDUCTED IN JAN-11, UNDER WHICH SECTION

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 June 2011 Yes , payments to the sub contractor is an allowable expenditure for you client. Please ensure whether interest payment has been made for late depositing of TDS or not.
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Expenditure on which TDS is applicable and is deposited on or before 30.09.2011, that will not be disallowed.

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