transpotaion expense captialised on asset .should tds concept arise.
eg. 2500000 asset purchased transpotation expense is Rs 125000 .total amount capitalsied but tds not decudted
should i decudted it
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Income tax tds
Replies (2)
TDS need not be deducted if transpoter has fuernished his PAN to the deductor.(w.ef. FY 2010-11)
[However, the liablity to deduct TDS has nothing to do with the nature of payment(Revenue/capital) the same is going to be recoreded in the books of deductor]
If your query is whether TDS is applicable only for expense ? - Then No.
TDS is applicable on all payments covered under the relevant sections oft the act irrespective of its nature of treatment in books of accounts.
Sec 40a(ia) deals with disallowance of expense if TDS is not deducted, However additionaly in case of non deduction he will be treated as assessee in default u/s 206C(6A). He will be liable to payment of tax, interest, penalty and prosecution
However please note Mr. Saurabh's answer also that TDS is not applicable in case PAN of the transporter is available
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