20 March 2012
This is not a easy question and a very practical Question...
Who Will Deduct TDS on Same as Co. is not incorporated yet ?
But i guess, you are not required to deduct TDS before Incorporation of Co. on Expenses which you are not claiming as Expenditure in P&L A/c... but m not Sure and Query is still open...
20 March 2012
A difficult question.I can suggest that promoters can deduct and pay the TDS on behalf of the company as they are the whole and sole till the company is incorporated and they are eligible for reimbursement of the same but as Raghav said even i am not sure.
21 March 2012
RAGHAV WHAT IF PROMOTER IS A BODY CORPORATE DONT U THINK THAT TDS SHOULD BE DEDUCTED BY SUCH PROMOTER.CAN U QUOTE A SECTION THAT IN SUCH CASE TDS IS NOT PAYABLE
whenever govt. have to impose some liability, they have to provide so in act, and if no such thing is provided in act, then we do not have to create liability merely because no sec is there stating not to impose liability.
if u consider the impact of non deduction,
Such expenditure can not be disallowed in the hands of promoter as promoter is not claiming such expenditure,
As such expenditure is not claimed by promoter, he is not liable to deduct TDS
Such expenditure can not be disallowed in the hands of company as well since no default as co. was not in existense..
CAclubindia
