Tds under section 194J is applicable on prior period expense? For example proffessional fee for financial year 2018-19 is not accounted in books Fy 2018-19,but accounted in the books FY 2019-20 then dissallowance is applicable on such prior period expense? If dissallowed we can claim dissallowed amount in the year of payment?
Expenses accounted or payment made which ever is earlier TDS is deductible. Hence prior period expenses booked in current month, TDS is deductible in current month.
if you do not deduct TDS on any expenditure , 30% of the full amount of expenditure will not be allowed as expense in the year.
the 30% expenditure will be allowed as expense in the year of deduction.
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