Deduction u/s 43B

Section 43 B applies on the expenses whereas Tax collection at source is not an expense... It is just an additional amount which you collect from your Debtor and deposit it with the Govt..

eg:- Journal Entries

a) At the time of collection

(1) Bank a/c............. Dr

                To Debtor A/c

(2) Debtor A/c............. Dr

                   To TCS Payable

b) AT THE TIME OF DEPOSIT

TCS Payable a/c............Dr

       To Bank A/c

In short 43 B applies only in case of deduction of an expenditure whereas in case of TCS "NO EXPENSE OR DEDUCTION IS INVOLVED"

Hi amir, good explaination.... and correct too...

But, i think SEC 40 (A) wil b applicable, which is applicable in case of TDS

Hi Dhirav, thankx  for appreciating..

Again my friend the opening words of Sec 40 (a) says "THE FOLLOWING AMOUNT WILL NOT BE DEDUCTED IN COMPUTING THE INCOME........"

TCS is not a deduction

Amir u r correct but section 40(a)(ia) wont applicable

SECTION 43B IS NOT APPLICABLE ON TCS.

No Sec 43B Is Not Applicable on TCS as it is basically an collection...hence not an expense its a liability