Dear Experts,
What are the consequences of non deduction of TDS on capital expenditure.....
Payment made without deduction of TDS is not allowed to add in Cost of Capital Asset as per Income Tax Act.
Siddharth Bonny Tiwari (40 Points)
04 July 2018
KOUSHAL JAIN
(Chartered Accountant)
(471 Points)
Replied 04 July 2018
Payment made without deduction of TDS is not allowed to add in Cost of Capital Asset as per Income Tax Act.
CA Sunil Kumar
(Chartered Accountant)
(4514 Points)
Replied 04 July 2018
KOUSHAL JAIN
(Chartered Accountant)
(471 Points)
Replied 04 July 2018
It is very obvious TDS is applicable only on service and contracts, not on goods whether capital in nature or revenue in nature.
TDS is applicable on other than goods part of capital expenditure.
Siddharth Bonny Tiwari
(40 Points)
Replied 04 July 2018
KOUSHAL JAIN
(Chartered Accountant)
(471 Points)
Replied 04 July 2018
for example machine purchased 500000 Service of installation etc 150000 TDS applicable U/S 194C
TDS not deducted on 150000 installation service part
Cost of Machine is as per income tax act 500000 without including 150000 service part on which TDS not deducted.
In block of plant & machine only 500000 will include as per income tax act
vrushank
(Article assistant )
(22 Points)
Replied 26 June 2020
But still it can be shown as a revenue expenditure right and it shall suffer dis-allowance to the extent of 30% under sec 40(a)(ia) of IT act 1961.
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