Tax audit report tds isssue

Tax queries 895 views 5 replies

CA Parul Saxena

8527 Points Posted on 13 November 2014

Printing & Stationery:-

Payment to contractor-(TDS Deducted on such amount)................................................................................... 150000

Payments to contractor(TDS not deducted as below the taxable limit of TDS).......................................................100000

Others stationery small things (TDS not deductible )...............................................................................................15000

Total.............................................................................................................................................................................265000

In tax audit report what amount to write under clasue 34:-

Payment made to contractor..................................................250000 or 265000

Simply my query is if in a particular head of expenditure some amount lies on whcih TDS is decutible and some amount lies which are outside the scope of TDS then whole amount is to be given or only those amount is to be given on which TDS is applicable.

Replies (5)

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Posted on 13 November 2014

In your case, 34(a)(3) Nature of payment: Contract u/s.194C, 34(a)(4) Total Amount of payment for Contracts whether T.D.S Deductible or Not: 2,50,000(1,50,000 payments attract 194C provisions +1,00,000 for Multiple persons where it does not exceed limits specified u/s.194C), 34(a)(5) Total amount on which tax to be deducted: 1,50,000, 34(a)(6) Total amount on which tax was deducted at specified rates: 1,50,000 (if in line with 194C), 34(a)(7) Tax deducted out of above: 15,000 Assume payee is Individual. It is nature of payment which covered under TDS provisions and it is not a nature of expenditure i.e Store purchase.

BPAst

others

209 Points Posted on 13 November 2014

In my opinion 265000/- to be entered. I have also attached a file for other col. for point no.34 of 3CD. any other opinion awaited

BPAst

others

209 Points Posted on 13 November 2014

Dear Sir,

A small correction reqd in the above word file attached, if Rs.15,000/- is paid for purchase of stationery as individual items, then the same won't be considered. in Col. 4 of the table.

Thank you Mr. Nuli Swami Ayyappa Sir, for drawing attention to that point in the query.

keshav jhawar

article

30 Points Posted on 13 November 2014

The same rs.15000 wont be considered as it is against purchase of materials.....is it correct sir

CA Parul Saxena

8527 Points Posted on 13 November 2014

Thanks to all of you for the valuable reply. I had referred guidance note of ICAI and after referring it i got my answer. The amount to be mentioned is Rs.265000 (Please refer para 58.6 of guidance note of ICAI)