depreciation and tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2011 one of my client has purchased fixed asset and paid 1 lacs as labour charges to another person for fitting? is it necessary to deduct tds on it and if tds is not deducted then depreciation will be disallowed or not?

is there any notification or judgement in this regard??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 June 2011 Section 194C attracts. Depreciation on Rs.1 lacs can't be disallowed being an allowance and not an expenditure.

Ashok Asthana

Ashok Asthana (Expert)
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01 June 2011 TDS should be deducted as the payment is in excess of the prescribed limit.

Depreciation is altogether is a different matter and has nothing to do with TDS.

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Guest

Guest (Expert)

01 June 2011
Tax needs to be deducted from Rs. 1 Lac (being Fitting Charges).

Depreciation would not be affected and would be allowed. This is because Depreciation is related to Fixed Asset Value (which is Capital in nature), Fitting charges would form a part of Fixed Asset irrespective of the deduction of Tax from it.