Tds deducted

Our Company for Technical education purpose RS. 46800.00 & 26700.00 paid  to Director son through our Company Cheque Book . Now my Question is Can TDS Applicable here  & Which LEDGER Head  Show against this transaction.............. 

Replies (5)

1. Any expense incurred other than for the purpose of business or profession will not be an allowable expenditure as per sec 37. 
2. In your case, if the company has incurred expenditure for directors son, there must be a nexus between the business and the expenses incurred. If the same cannot be proved then the entire expenditure of Rs. 73,500 will be disallowed u/s 37. 
3. The question of TDS will not apply here as it is an expense incurred on behalf of the director's son. 
4. Refer case law  Indian Galvanics Cyrium Foils Ltd. Vs DCIT (Bombay High Court) where expenses incurred by the company for the director's son for higher education abroad is disallowed as business expenditure. 
Please correct me if the above interpretation has an alternative view.

thanks sir

 

TDS is not applicable to the aforesaid transaction. Also, it is not an allowable expenditure as it is incurred for the purpose of business. Create a ledger on directors son's name or you can show it in the directors ledger name itself. 

No problem.

hi sir / MADAM.
as I am commercial vehicle owner the transporter deducted the TDS before submitting the TDS declaration, if any possible to refund the deductible amount from transporter or any for refund

thank you
Prasanth G
golden transport

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