TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2011 TDS PAID BY A FRIM ON BEHALF OF CONRACTOR .
WHETHER THIS WILL BE A ALLOWED OR DISALLOWED EXP. GIVE US THE REASON.

CA Navin Jain

CA Navin Jain (Expert)
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03 May 2011 IF TDS PAID BY FIRM ON THE BEHALF OF CONTRACTOR, THEN EXP WILL BE ALLOWED

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2011 ATUALY IS NOT ON ITS BEHALF AS THIS TDS PAID WILL NOT BE GIVEN BY CONTRACTOR TO COMPANY AGAIN

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CA. Deepak Narula

CA. Deepak Narula (Expert)
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03 May 2011 TDS paid out of pocket then expense cant be claimed in PGBP. It has to be deducted from the expense paid/debited itself.

Better do the reverse calculation and take the TDS paid also as expense.

Example: Bill Rs. 1000000. Calculate TDS @ 1% like = 1000000*1/99 = 10101. Pay TDS Rs. 10101 and claim expense at gross amount at Rs. 1010101. But make sure that contract price is revised at Rs. 1010101.

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