Under section 195A tds is payable net of tax where tds is borne by payer, normally it applies to transaction involving non residents, but in present case it is related with resident individual
An assessee has an contract with HR consultant for a consideration (say 50,000) and tds is borne by assessee.
1) I want to ask, TDS has been deducted and deposited, does assessee has to file return of TDS showing this transaction and later giving benefit to consultant or just by depositing the tax it fulfill all obligation & no further action required??
2) Tds deposited is an expense and it has to be shown in Profit and loss account and during filing ITR it has to add back/disallowed this expense.
On 1) i want a reply/correct answer, and on
2) let me know if my opinion is correct and if wrong please correct me
Thanks
CAclubindia
