If a housing society does not deduct tds

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What are the consequences if a housing society/ Apartment owners association does not deduct TDS on security contract charges paid Rs 350000/- per year?

It has a PAN but does not have a TAN, there are no business activities, there is Bank interest received Rs 10000/-p.a.

The individual slab is applicable to Apartment owners association as AOP.

Income upto Rs 10000/- is exempt for a Coop society.

The question is whether Rs 350000/- will be added back to income on account of non deduction of tax at source?

Replies (2)

Mihir

Wealth Manager

5358 Points Posted on 12 February 2014

The file might be useful.

Guest

Posted on 13 February 2014

The attached file is quite useful.

Its mentioned there that there will be"Dis-allowance of Expenses, on which tax has not been deducted /deposited."

I case of a hsg coop society who does not have any business activity The maintenance contribution collected from members and expenses like security contract payments are exempt on the principle of Mutuality. So, how can there be any disalloance of expenses?