Cash payment more than more the rs. 20000/-

Is it possible to make payment of more than Rs.20000/- as a premilary expences against Purchase of Building Material without deducting TDS. from Vendor.

Regards

Nilesh

Replies (4)

There is no applicability of TDS in case of purchase of materials unless it is a works contract. Even in that case, 194C applies if payments/credits exceed 30,000 (single bill) or 100,000 (aggregate in a year).

Thank you. 

Actualy, Vendor submitted 5 bills of Briks each for Rs.40000/-, and other vendor submitted 6 Bills of sand each 30000/-. Bill to bill payment was made. without deducting TDS.  CA agrument was you can pay in case of Preliminary expence against purcase of building materil. No voilation. 

Could be do that ?. I am not a CA. and we have to follow as he say.

Regards

Nilesh.

Since such expenses are capital in nature (assuming it to be used for construction purpose), there would not be disallowance of expense due to non-deduction of tax at source. I presume your CA meant the same. Further, are you referring the preliminary exps u/s 35D of IT Act?

Thank you,

 

No confusion now.

Regards

Nilesh.

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