I just heared that TDS is an expense for the deductor and Tcs is an income to the collector. so far I beleived that Tds is not an expense to the deductor and he acts only as an intermediary between the tax authorities and the creditor to whom the amount is payable in the form of rent, salary, sub contract payment etc.for eg when a principal contractor make payment to a sub contractor say for 100000 rs, have to deduct Tds @ 1% u/s 193c,ie 99000 to sub contractor and rest of 1000 credited to his PAN as TDS, The former liability is to pay Rs 1,00,000/-,he discharged his liability as above.Then How TDS will become an expense to TAX deductor?Please give advice to me..Your kind cooperation is highly appreciated
CAclubindia
