06 January 2011
1)Whether TDS is to be deducted on Capital Expenditure? (For Eg : Rs.50000 is paid to a Labour Contractor for erection of Machinery and the same is capitalized without deducting TDS)
11 January 2011
I agree with 2nd point of "AKBAR MIRZA"
But, even if it is capitalized , i think we must have to deduct the TDS , COZ...... In any provision of tds it is not mentioned anywhere that, if we not clamining it as exp in P & L Than can't deduct the TAX,
I think EVEN IT IS CAPITAL EXPENDITURE , as it is a labour chg, we must have to DEDUCT A TAX
14 January 2011
I do agree with Vandana, since the expenses capitalised there is no question of disallowance, but while assessment , A.O can raise the demand on penalty for non deduction