Tds is on Expense or Asset under 194C

This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194C applies to payments treated as expenses or assets. The consensus is that TDS is applicable to payments made to contractors irrespective of whether the expenditure is capital or revenue in nature. Non-deduction of TDS can lead to disallowance of the expenditure for tax purposes, potentially impacting both revenue expenses and capital expenditures.