Help in TDS

TDS 1142 views 18 replies

Hi i have a client having been liable to deduct TDS on the machinery constructed through a contractor. I would like to know that if he doesnt deduct TDS whether he can claim Depreciation

Replies (18)

Your client can claim depreciation on the Machinery. But the expenditure capitalized  will be disallowed u/s 40(a)(ia).

Originally posted by : Devendra

Your client can claim depreciation on the Machinery. But the expenditure capitalized  will be disallowed u/s 40(a)(ia).

agreed

Your Client Should deduct TDS, otherwise expenditure capitalized  will be disallowed u/s 40(a)(ia). It's true......

you client should deducts tds u/s194c and deposit same with interest otherwise it will be disallowed u/s40(a)(ia)

Your Clint Shud deduct TDS otherwise it will be disallowed

Originally posted by : Devendra

Your client can claim depreciation on the Machinery. But the expenditure capitalized  will be disallowed u/s 40(a)(ia).

Ya Mr Devendra is right

I am completelly  agree with DEVENDRA
 

Disallowance is for revenue expenditure, not for capital expenditure, so i think disallowance will not come. pls currect if i am wrong.

Agreed with santosh. I think ur right santosh...1

Agreed with devendra,

Not agreed with Mr. Santosh as sec.(a)(ia) does not makes any discrimination between capital and revenue expenditure and it covers "payments to contractors/Sub contactors.

 

 

 

AGREED........................

agreed with Devendra.

i also agreed sharad suman....

captilasation of amount is not expenditure, hence the amount can not be disallowed as it was never allowed as deduction. 40(a)(ia) has no application in this case

however, person will have to face the other consequences. like penal provisions of section 272


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