i AM WORKING IN A CORPORATE. WE HAVE TAKEN SOME PROFESSIONAL SERVICES FROM A CORPORATE AND THEY HAVE SUBMITTED A BILL OF RS 1.5L FOR THE SAME. WE HAVE PAID A SUM OF RS 1 L TILL 31/03/2009. THE BALANCE IS OUTSTANDING AS ON DATE. NOW THE AUDIT OBJECTION IS ON NON-DEDCUTION OF TAX ON RS 1L. THEY ARE OF THE OPINION THAT SINCE THE WHOLE AMOUNT OF 1.5L HAS BEEN RECOGNISED AS EXPENSE DURING THE YEAR 31.03.2009 WE NEED TO DEDUCT TAX. MY OPINION IS PART PAYMENT DOESNOT ATTRACT THE LIABILITY TO DEDUCT TAX AND WE WILL DEDUCT WHOLE OF THE TAX ON BALANCE AMOUNT. KINDLY ADVISE.
CAclubindia
