15 May 2009
sir we have deducted t d s on contractors, professionals and salary but for the period 1.6.8 to 31.3.8 at each month but not paid till the end of march. and if tds paid up to 31.5.8 then expenditure will be allowed or not
15 May 2009
Hi, if TDS for the month upto Feb. is not deposited till the end of march, such expense shall be disallowed but no such provision is applicable on salary payment hence salary expense will not be disallowed however if TDS for the month of March is deposited up to 30th September than expense shall not be disallower U/s 40(a) but interest on late deposit of TDS will be deposited @ 1% per month or part thereof from the due date of deposit till the actual date of deposit. 31st May is due date of deposit only on TDS deducted on credit (not the payment) made on 31st March hence if payment is made on 31st March than TDS will have to be deposited on 7th April only.