LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

TDS on Capital Expenditure

Rohit (46 Points)

10 May 2007

If tds is not deducted on an asset which is of the capital nature and if it is sold then what is the treatment of capital gain?

Reply
Follow
Share

2 Replies

Manjunath (58 Points)
Replied 10 May 2007

Dear friend,

1) If you do not deduct the TDS on a particular tansaction on which you are liable to deduct TDS under the Act, then you will be liable for penalty &  interest for non deposit and non filing of quarterly TDS returns  under TDS provisions. Hence, please comply TDS provisions in time to avoid penalty & interest.

2) I do not think that, there will be any change in the treatment of  capital gain for non deduction of TDS.

howere, I request you to kinldy e-mail, what is the actulal  asset  in questtion, to enable me to clarify in detail.

My e-mail  id  -  m.chanageri @ yahoo.com

Thanks & Regards,

MANJUNATH

(Guest)

Is TDS is applicable for payments made before commencement of business also? We are a private limited company and making some payments to consultants, designers etc.,. Do we need to deduct TDS on these payments? Business operations and sales are not ye commenced?