Dear Sirs,
In our case advance amount paid to a contractor for carrying out labour contract. but fails to deduct TDS . Such amount is shown as advance under current assets in balance Sheet and not shown in Profit & loss account during the year. whethre it is required to disallow in computation
The amount is liable to be disallowed. Further penal provisions relating to non-deduction of tax will be attracted. Advance to contractor is one form of payment of expenses to contractor which will be adjusted against bills.
RMA And Associates LLP
New Delhi
CA Inter
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S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
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CA Suraj Garg & Associates
New Delhi
CA Final
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CCI
Pro
CAclubindia
