06 November 2012
Sir, storage on penalty charges what is the tds percentage whether it should be come at section 194c or 194I,becuase we deducted tds under sectin 194C as contractor, whether it is correct or not
06 November 2012
In my opinion TDS should be if at all to be deducted it should be as 194C (Same as on Storage charges), but it should be deducted only if such penalty payment is allowable as expenses under Income Tax Act. It should be first check if such penalty payment is allowable or disallowable under IT Act. If disallowable then you should not deduct TDS (as non deduction will not make any disallowance u/s 40(a)).
CAclubindia
