07 December 2010
What do you mean by indirect exp under sec 40(a)(ia). In case of tax laws , you have to apply the actual provision not your own observation. Under this section nothing has been said about indirect exp.
Sir As the provisions of Sec 40 (a) (ia) are applicable only to items covered by Sec 30 to 38 and the profit us 28 is arrived after allowing the direct costs expenditure us 145 on the basis of books regularly maintained by the Assesse - Whether direct costs expenditure incurred without TDS are disallowable us 40 (a) (ia)?
08 December 2010
No TDS is required to deducted on purchase cost of material, further only salary paid outside india or to non resident without deducting TDS or after deducting TDS not deposited is disallowed (refer sec 40(a)(iii)). That means salary paid to resident in India without deducting TDS is allowed as deduction. Because sec 40(a)(ia) do not cover salary expenditure.
What about other direct expenses such as in the case of an advertising firm engaged in hoarding display incurred display charges such as hoarding rental, ground rent, Flex fitting charges, Display charges made by sub contractors etc.
CAclubindia
