18 December 2009
If the TDS is otherwise applicable on these bills as per the provisions of the Income tax Act, then TDS needs to be deducted at the applicable rates irrespective of the period when expenses are incurred. TDS is to be deducted at the time of booking of the expenditure or payment, whichever is earlier. Further, this Transport Expenditure will be treated as prior -period exp but will not get dis-allowed. But if default is made in the deduction of TDS, it will get dis-allowed.
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