Applicability of TDS

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My client has been provided professional services by an architect for which he has paid fees more than Rs 20,000/-.He has not deducted TDS.Professional Fees has been capitalised as it was for the building that was being constructed,Whether TDS is applicable?

Replies (7)

Capitalization or otherwise may will have any effect on TDS.  May be 40(a)(ia) provisions will not be attracted, since the expense has been capitalized, but Section 201 will be attracted.

yaa

TDS had to be deducted on it.

there are 2 sec for deducting TDS.under PGBP although you are not claiming expenses but still you will be liable for default in non dedction of TDS under TDS relevant provisions sec194

DEAR FATEMA,

 

TDS PROVISIONS WOULD GET ATTRACTED ONLY WHEN THE RELEVANT EXPENDITURE IS OF THE REVENUE NATURE AND NOT OF THE CAPITAL NATURE. THUS, IN THE GIVEN CASE, NO DISALLOWANCE U/S 40(a)(ia) AS U CAPITALISES A RELEVENT EXPENDITURE.

 

REGARDS,

 

MANOJ

 

ofcourse tds will be applicable.................no where in sec 194 to 206 it is written about that payment ma\ust be made for capital nature or revenue nature u have to deduct tds other wise there will be reporting in 3cd for this n ....A.O. can disallow u r deprecitation exp for that asset..................

@ manoj  ..............u r tottaly wrong bro..........

i am totaly with vikas nowhere in section 194J or any other section it has been mentioned about  the  nature of  expenditure

nature of expenditure is of no relevance for deducting TDS. Either it is revenue or capital TDS should be deducted

TDS SHOULD BE DEDUCTED


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