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T.D.S.Deducted or not

RAJIW KUMAR SINHA (Chartered Accountant) (109 Points)

19 January 2010

Whether T.D.S.deducted or not U/S 195 on payment to forign supplier for imports of raw material and other capital goods through L/c or oterwise. If yes , Is the tax dedutible on whole of the sum paid to foreign supplier whether such sum is income or not?

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9 Replies

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 19 January 2010

TDS is always deductible only on services. No TDS is deducted on purchase sale transactions, whether its domestic or international.

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 19 January 2010

right & agree

CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 19 January 2010

Tarun is right

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 19 January 2010

Originally posted by : CA.Tarun Maheshwari
	TDS is always deductible only on services. No TDS is deducted on purchase sale transactions, whether its domestic or international.

Agreed with the learned member

manish (Article Assitant) (358 Points)
Replied 19 January 2010

Also Agree with the tarun.

Atul Kumar (working employee) (153 Points)
Replied 19 January 2010

abslutely right...... the simple cocept of TDS , TDS livied on service. not on purchase of any material from what every plance (domestic & international)

Naveen Kumar (CA, GDPA, ) (58 Points)
Replied 20 January 2010

I ve following doubts regarding TDS deduction.

If during the financial year TDS is deducted short for 10 months, is it possible to deduct TDS at higher rate in next two months, to compensate the previous short deduction and vice versa..?
Is non levy of surcharge or cess tantamount to short deduction of TDS. Any penalty or interest for such.? And such non/excess levy can be made up by charging at higher/lower rate..?
if TDS is not at all deducted upto 31st march but subsequently deducted say June and paid before filing of return the expenses are admissible or allowable...? or allowability is only for TDS deducted before 31st March but paid after 31st March and before filing of return.....?
What are the consequences if the items are Salary, Employer's cont. to PF, Employee's cont. to PF and difference between the allowability if Deducted before 31st march but not paid and paid before filing of return Not deducted before 31st march but deducted after 31st march and before filing of return

T. Abhinand Reddy (Articled Assistant) (21 Points)
Replied 07 April 2011

1. No, TDS once short-deducted attracts interest @ 12%

2. Whenever, surcharge and cess are required to be applied, the same shall have to be deducted. Non-deduction of surcharge and cess on TDS would amount to short deduction and hence attracts interest @ 12%.

3. Any expense is admissible if TDS if deducted and remitted before filing of return.