our company give a order for furniture and fittings to a company and made an advance payment and deduct TDS - 94C on the same advance. after completion of work, the other company gave the bills for the furniture and the installation or labour chrgs. our company recd the bill before 31-3-2010. and still it didnt deduct TDS on balance amt credited to the other company's account.
now, my query is:
1) if we deduct TDS-94C, do we have to consider the payment as an expense or we can treat the same as an asset.?
2) without deductin TDS, the expense will be disallowed. but if we treat it as an asset, will it still be disallowed if we wont deduct TDS on the balance amt.?