10 January 2011
My client has done furniture and fittings in the office, and has paid him cash for the entire amount of Rs.140000/- in 4 Installments and it also includes 31000/- labour charges.The bill is in normal paper giving the detail of expenses and thereby paymnt is made
My question is 1) whether dep will be allowable under IT Act on ? Since Cash is paid for FA?
2) Whether TDS needs to be deducted on 31000 or the whole amount ?
3) whether companies act contain any provision for FA regarding cash payment?
11 January 2011
TDS is required to be deducted on 31000/- if separate bill is available. if separate bill of labor is not available, no TDS is required to be deducted.
12 January 2011
sir, can u give me any strong reason for not allowing the depreciation under IT act,and if u have any supporting case law then pls provide me for the same
CAclubindia
