One of our client paid TDS excess & professional tax short & later they are all this excess or short paid taxes trf. to miscellaneous expenses & claim as expenditure.
I just want know whether this type of expenses are allow or not while computing the total income as per IT Act? if yes or no then what section?
They are also written off certain advances which is not recoverable & trf. to Misc.Expenses.
06 August 2008
As per my opinion, excess TDS deposited can be transferred to short & excess account, but you can not escape from the liability of short deposit of Professional tax. For advances too, you can write off the amount, but you must have the proofs to satisfy the AO that all necessary legal actions were taken for the recovery of these advances, and it was impossile to recover them, so these are written off.
CAclubindia
