30 June 2008
X Ltd had paid professional fee to a Y Ltd (HR Outsourcing company) Rs 84 lacks in financial year 2006-07. TDS was not deducted U/s 194J when these payments were made.
Due to the above the expense of Rs 84 laks will be disallowed in the books of X Ltd U/s 40(a).
X Ltd is planning to pay TDS on Rs 84 lacks in the financial year 2008-09. Will the expense be allowed as deduction for the financial year 2008-09 ?
Assuming X Ltd pay TDS on Rs 84 lacks and issues TDS certificate to Y Ltd; Can Y Ltd claim credit for TDS paid on its behalf in financial year 2008-09 ? (Pls note Y Ltd has paid Income tax on its income in financial year 2006-07 ).
CAclubindia
