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TDS on Capital Assets

652 views 3 replies

Sandeep Mishra

CA FINAL

151 Points Joined June 2009

Is TDS is applicable on the expences which are to be capitalised ?? TDS is deducted U/S 194C of the IT act. In one instance i hava encountered a case where company has deducted 2% TDS on the said payment which is of capital nature.

Replies (3)

Ashish Sharma

Service

1028 Points Joined March 2009

Yes, it can be capital expenditure not exempted for TDS under the act.

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Yes the above is possible. Eg: In case of bill of labour work for new Furniture made TDS will be deducted on labour bill though the same is to be capitalised.

Guest

dear sandeep

offcourse it has to be capitilised if it is in the nature of capital exp and if tds provision is applicable on the same then we have to deduct tds irrespective of the nature of expenditure.

if tds is not deducted on the same then it shall be disallowed and hence we can not capitilised it and can not claim depreciation on it.