whether tds deductible or not ??

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This query is : Resolved

CA Abhishek Singh (Querist)

06 October 2010 whether tds is deductible or not in the following cases.

1.) purchase of fixed assets rs.500000

2.) advance payment for purchase of fixed assets rs.500000

3.) advance payment for purchase of fixed assets & installation charges which is not known at the time of advance payment.

Aditya Maheshwari

Aditya Maheshwari (Expert)

06 October 2010 If TDS deductible normally then only TDS deductible on those payments.

Dhaivat Trivedi

Dhaivat Trivedi (Expert)

11 October 2010 on the basis of given info,
Tax is not deductible on any.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)

18 October 2010 Mr.Abhishek , As per given information by your end non of that is liable to deduct tax at source , one thing you should mind that , tax is need to be deducted on the taxable payment made by you not on all payment . if you are purchasing something they are not making direct taxable income so naturally you can not deduct tax at source

Aditya Maheshwari

Aditya Maheshwari (Expert)

18 October 2010 First of all there is no bifurcation given in section 194C i.e. whether TDS should be deducted on expenses in revenue nature or capital nature.

Also if something we are purchasing is a capital goods it could be a revenue item in the hands of the other person. So income is being generated in the hands of the person to whom payment is made.

Hence TDS deductible.

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