Tax dedudcted at source

This query is : Resolved

sameer (Querist)
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14 December 2008 Sir
A company has paid sponshirsihp fees of Rs 12000$ to a foriegn co tds has not deducted what will been the consequences what is to be done?

Rs 300000 paid for co sponshirship fees for india infrastructure TDS not deducted what will be the consequences pls advice sir

Ravikumar.G

Ravikumar.G (Expert)
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15 December 2008 Disallowed Expenditure:

u/s 40(a)(i) expenditure will be disallowed if TDS is not made or no tax has been paid on them.

Penalty : u/s 271C : Sum equal to the amount of tax which he failed to deduct.