Whether TDS is required to deducted on Capital expenditure.
This query is : Resolved
06 July 2010
Whether TDS is required to deducted on expenditure if expenditure is in the nature of capital expenditure.
06 July 2010
Yes, TDS will be deducted even if expenditure nature is capital .
for example. A buidling contractor builds factory building for company. It will be captilzed, but tds will be deducted on service bill of builder.
for example. A buidling contractor builds factory building for company. It will be captilzed, but tds will be deducted on service bill of builder.
06 July 2010
AGREE WITH EXPERT. BUT IF CAPITAL EXPENDITURE IS IN THE NATURE OF ACQUISITION OF ASSETS TDS WILL NOT BE DEDUCTED ON SAME. ONLY CAPITAL EXPENDITURE SUCH AS ERECTION CHARGES, FREIGHT, SERVICE BILL ON CONSTRUCTION OF BUILDING, ETC ATTRACTS TDS.
06 July 2010
TDS is applicable while making payments to certain categories of persons. If you look into the payments most of them are revenue in nature but as per Section 194C even the capital payments are subject to TDS, may be on the ground that the contractor on receipt of the same may be made liable to pay tax and the law makers wish to catch hold of the revenue at the earliest point of time.
siva208@yahoo.com
siva208@yahoo.com
07 July 2010
i will like to ask one thing in here,
if TDS is not deducted then u/s 40(a)will the depn be disllowed & if it is disallowed, then it has to be done each yr as deppn will b charged each yr.
Also what will be the scenario if the company is at the stage of before commencement of Business.
if TDS is not deducted then u/s 40(a)will the depn be disllowed & if it is disallowed, then it has to be done each yr as deppn will b charged each yr.
Also what will be the scenario if the company is at the stage of before commencement of Business.
07 July 2010
No disallowance u/s 40(a) for depreciation.The disallowance is on the expenditure dr to p/l and on which no Tax is deducted.In case of Fixed Assets ,no direct debit to Profit and Loass Account.
If company is at the stage of before commencement of Business,still TDS to be deducted
If company is at the stage of before commencement of Business,still TDS to be deducted
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
