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Controversy between word PAID and PAYABLE-Section 40(a)(ia)

TDS / TCS 1177 views 1 replies

The Question relates to Section 40(a)(ia).The section says that the amount of expenditure will be disallowed when the amount of expenditure is PAYABLE and tax has not been deducted or when tax is deducted but has not been paid.

Now the Question is whether this section is applicable when amount of expenditure is PAID and tax has not been deucted or tax is deducted but has not been paid?

Please also refer to section 43(2)-Meaning of word PAID from Bare Act and Frequently Asked Questions Q.3 from Vinod.K.Singhania's Latest Professional Edition Page no.368, Para No. 143.2-3.

Replies (1)

The word 'Payable' is used in context of payee and not in context of expenditure.

Hence, in your case provisions of section 40a (ia) is applicable and amount paid without TDS where applicable will be disallowed.

Thanks,

CA. Ashok Shah



CCI Pro

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