Whether payment made to Newspapers agency for publishing Legal notices which the company is legally bound to make,be debitted to "Publicity & advertisemnt A/c" or " Legal Expense A/c". Also, TDS to be deducted at what rate and under which section?
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Legal notices in newspapers
Replies (5)
It is legal expenses.
yes it is legal expense so it shall be disclosed seperately and not under any commmon expenditure a/c
tds under section 194 C.
legal exp + tds u/s 194 C @ 2% (presuming that newspaper agency is not individual/ HUF)
1.The nature of expense is "Publicity & advertisement" whereas the purpose is"Legal".
And we normally go for nature wise accounting & not purpose wise accounting.
2.Apart from that, accounting it in " Legal exp " & deducting TDS @ 2% will may attract disallowance in Tax audit report, creating further complexities from it dept.
So.kindly reclarify ur stand to account it as LEGAL EXP & deduct TDS @ 2%.
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