TDS on Capital Expenses

As far as capitalisation of expenses is concerned, the assessee must have capitalised cost incurred for such project, machine, etc. Penalty or interest paid on delayed payment of TDS will route through profit & Loss account, which will be eventually disallowed. So no further disallowance can be made as far as depreciation is concerned, since ,the value on which depreciation is charged is exclusive of such delay penalty, interest, etc.

Hi Thanks for the reply. But adding on to this. Think iam capitalising the bills (even prior dated bills) as on March 1st. How can the Interest be applicable on the same. Can this be an escape route for the assessee

Hi

My query " if any person made payment to contractor for construction of his person resid. house, TDS libility will arrised on it ?

No. Unless he is subject to tax audit under 44AB. Otherwise individual need not deduct any tax when his house is constructed

Hi,

Expenses should be capitalised. and added to asset? So t.d.s. should be deducted on expenses. No w  t.d.s i s very important and You should not escape from this. So You can show this in the Balance Sheet.  I think so.