10 December 2007
For the last 2 assessment years, the expenditure on which tax has not deducted at source/not remitted within the due dates needs to be disallowed in its entirety.
This is particularly severe in cases of 194C deductions wherein the entire expenditure is disallowed if a small % i.e. 1%/2% is not deducted / remitted under the said section.
I would like to know if anybody has filed any suit questioning the legality of this draconian provision.
It is well settled that equity and taxing statues are alien. I don't think the provision can be challenged.
The remedy is provided in the act itself. Remit the tax in later years and claim deduction in the year of payment.
I too am facing the same ordeal and have some query.
We have not deducted tax during the financial year 2004-05 and the same has not been paid yet. Now if we remit the tax now(ie. during the financial year 2007-08), how do we issued TDS Certificate? How do we submit TDS return?
19 March 2008
These are no different interpretations as regards the words in the Section goes. If you want to avoid the liablity, the only option is to pay tax.
CAclubindia
