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TDS DISALLOWANCE

Tax queries 500 views 1 replies

A building which is under construction on which contractors have been employed for carrying out the construction work  and the payments to the contractors are capitalised in the value of the building, 

now my question is that on payments to contractors no tds has been deducted , now i want to know wheather the amount  paid to contractors will be disallowed or not, since it is capital expenditure and not a revenue expenditure.

Replies (1)

dear lalit,

since the amount is capitalised there will not be any disallowance but from TAX AUDIT point of view as an 'Auditor/Audit Assistant' we have to report the Non-Deduction of TDS in the Form 3CD.

This is our duty.


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