Expenses Disallowance

I have a quetion : A firm had invoiced us for Professional Services which is including rent that is the 40% of total value. We have deducted the TDS @ 11.33% on the total invoice value (Professional Services). My CA told me that these expenses would be disalolwed. My question is this : Is there a wayout to avoid all these disallowances etc?

Replies (11)

no wayout

if TDS is applicable then u hav to deduct TDS owise disallowed

Can we pay the balance ot TDS now to save these disallowances?

 

yes it is the remedy in ur case

can you please tell me the procedure?

now u hav to deduct TDS u/s 194 I on rent portion of 40% at the rates applicable either 10% or 2 % fro AY 10-11 + interest, n ur 11.33 % on that portion will be refundable afterwards

Sir, for f.y. 10-11 it is ok but wat bout f.y. 07-08 & 08-09?

sorry not available for previous years

OK. Thanks Anurag G for your valuable advice & sharing your views and knowledge with me.

ur welcome

If you deposit TDS in current year then you can claim the expense(40%) part in current year .

Ganesh ,

 Expenses cannot be disallowed because of short fall in deduction of tax ,  THERE IS NO PROVISION WHICH SAYS THAT . Expenses can be only be disallowed if NO TAX is deducted at all . your expenses will be allowed in the year of claim , Even if u deduct 1% TDS instead of 15% TDS expense cannot be disallowed . expenses can only be disallowed if no tax is deducted at all . Dont worry , pls explain the provision properly to your CA and pay the balance tds.

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