deduction of TDS on payment to contractors

They might take up levy of interest and then the levy of penalty as well ....

1) If assesse fails to deduct tds then hi should deemed as assesse in default Under section 191 of It Act

2)Penalty Under section 271C upto the amount he failed to deduct/

3) Interest @ 1% p.m or part of the month on the amount of tax from the date from which such tax  was deductable to the date on which the tax actually paid

4)Prosecution

Under Section 276B faliure to pay tax deducted at souce- Punishable with rigorous improserment  for min-3 years and max-7 years 

interest and penalty willl be levied,,,, exp cant be disallowed as its not debited to P&L account

https://www.simpletaxindia.org/2008/05/disallowance-us-40aia-tds-default.html

Hi vinod check this.

hope it will solve your query

take care

wat will be the treatment on the depri of Capitalized Asset on whose payment the TDS is not deducted?????

There is no impact on it... Depreciation is related to fixed assset which is calculated on FA. and there is no provision affecting it...

hi

Payment made the contractors you should deduct the TDS and pay,  otherwise your not deduct TDS entrie expense disallowed

Clean case.......... TDS not deducted...... So pay TDS with interest............... Capitalization can be made bec either it is expense or Capitai in nature................. Cheeeeeeers..........