Tds is applicable only on revenue payment or it is applicable for revenue or capital payment both. Because If tds is not deducted on Capital exp. and exp. is disallowed, however it is not impact on P&L A/c.
so that if TDS is not deducted on capital payment then what consequence will arrise????????
Plz. give full reference like case Law, Notification, circullar etc..........
Disallowance can't be made u/s 40a(ia).
Many case laws are there to support this claim one such case law is given,
On plain reading of the section some people may interpret non deduction of TDS of capex payment will lead to disallowance.
As per Sec 28, profits & gains of any business or profession is taxable under this chapter. This profit has to be computed as per the normal method of accounting.
Sec 40 begins with "Notwithstanding any thing contained in Sec 30 to 38,...". It doesn't cover Sec 28.
Hence 40a(ia) will get attracted, where the expenses are allowed in Sec 30 to 38.
Under normal accounting the capex is not considered for arriving at P&L, hence it can't be disallowed for non deduction of TDS.
KK & Company Chartered Accountant
Pune
CA Inter
View Details
Abic and Mani Chartered Accountants
Kottayam
B.Com
View Details
CCI
Pro
CAclubindia
