06 January 2016
one of my client has paid to labour contractor an amount of 100000 three month before but did not deducted tds.
now he is showing that amount as loan & taking bill for 120000 in current date.
he will deduct tds 1200 & will pay remaining 18800 to contractor.
is this treatment right?
06 January 2016
Dear The treatment is not right. as the loan you are saying will be treated as advance by the income tax authority if you get the scn. So it is advised to deposit tds with interest.
CAclubindia
