Tds -transporter

This query is : Resolved

vivek somani (Querist)
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26 February 2014 what will be consequence in case neither i deduct TDS for the freight paid nor took the PAN of the trasporter?? in case of non- comliance of above can i shelter my expenditure under the amendment of finance act 2012 in section 40(a)(ia) by fulfilling its condition??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 If TDS is not deducted then the expense will be disallowed under Section 40(a)(ia).

However you can take benefit of amendment made by Finance Act.

If the transporters shows the freight in his return, pays the tax thereon and you furnish a certificate to that effect from a CA.