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Disallowance U/S 40(a)(i) of the Income-tax Act, 1961

This query is : Resolved 

12 November 2008 One of my client is an 100% EOU and hence his income from export turnover is totally exempt. However, he has not deducted TDS on Freight charges paid.

Is the expenditure is subject to tax if disallowed. In such a case is he liable to tax/interest/penalty.

Kindly clarify

P. srinivasa

12 November 2008 Refer my solution in 1st query of urs



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