Tds and 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2011 Dear Expert,

Our client is in construction business. It paid commission on flat sale rs 500000/- in cash, No TDS has been deducted.

1] u/s 40A(3) will attract, hence disallowed.

2] 40 (i)(a)- disallowance due to non Deduction of Tax

Same amount is disallowing twice.

Is it the case of double taxation.

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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24 August 2011 There will be two consequences of the transaction you mentioned:

1. Dis-allowance of Exp. U/s 40A(3)&
2. Penalty for don deduction of TDS u/s 271C.