Ganesh Sharma (Manager - Accounts) (57 Points)
18 September 2009I 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?
CA Anurag Garg
(Chartered Accountant)
(339 Points)
Replied 18 September 2009
no wayout
if TDS is applicable then u hav to deduct TDS owise disallowed
Ganesh Sharma
(Manager - Accounts)
(57 Points)
Replied 18 September 2009
Can we pay the balance ot TDS now to save these disallowances?
CA Anurag Garg
(Chartered Accountant)
(339 Points)
Replied 18 September 2009
yes it is the remedy in ur case
Ganesh Sharma
(Manager - Accounts)
(57 Points)
Replied 18 September 2009
can you please tell me the procedure?
CA Anurag Garg
(Chartered Accountant)
(339 Points)
Replied 18 September 2009
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
Ganesh Sharma
(Manager - Accounts)
(57 Points)
Replied 18 September 2009
Sir, for f.y. 10-11 it is ok but wat bout f.y. 07-08 & 08-09?
CA Anurag Garg
(Chartered Accountant)
(339 Points)
Replied 18 September 2009
sorry not available for previous years
Ganesh Sharma
(Manager - Accounts)
(57 Points)
Replied 18 September 2009
OK. Thanks Anurag G for your valuable advice & sharing your views and knowledge with me.
C.A. Sanjay Bhatia
(CA)
(496 Points)
Replied 18 September 2009
If you deposit TDS in current year then you can claim the expense(40%) part in current year .
Rajeev
(www.rkmco.com)
(985 Points)
Replied 19 September 2009
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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