Re:Implication of TDS not deducted

The expenditure on which TDS is not deducted will be disallowed in Income Tax assessment. How ever the amount can be claimed, once tax is deposited, may be in some later assessment year.

The person liable to deduct will be liable to pay interest at the applicable rate for the delay.

The concerned expense will be disallowed and it will result in to taxable income because you can not expect the assessing officer to lower the work in progress to the extent the expense is disallowed. So that means you have to pay tax on that disallowed expenses in addition to usual interest for for non deducting( hope u may deduct at least next year to claim that expenses). If you do so, you get those earlier expenses along with current year expenses.