Relation Expenditure Capital Nature to Not deducting TDS
This query is : Resolved
04 May 2020
Why is the capital expenditure for acquiring the Assets not subjected to TDS?
05 May 2020
No TDS applicable on purchase of either capital or revenue assets.
TDS applicable on capital or revenue works.
TDS applicable on capital or revenue works.
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05 May 2020
The main concept behind is that TDS needs to be deducted on one's income. If we are purchasing an asset it is not an income for us. If we are paying someone which is in the nature of income to the recipient TDS needs to be deducted subject to limits and applicability as per Income Tax Act.
05 May 2020
Capital expenditure involve technical know-how or construction of building pertain to business which involves service needs to be deducted tds if treshhold limit exceeds limit.
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