TDS is applicable on Fixed Assets?

sagar (CA Final) (379 Points)

06 July 2009  

Is TDS applicable if purchased a Fixed asset? According to me. as per provisions if you do not deduct TDS. The expenditure will be disallowed.


For purchasing a fixed asset we do not debit an expenses account. Hence No TDS to be deducted.

In Otherwords if you are Capitalising an expenses Then TDS is to be deducted.


I am confused whether its true or not