Tds

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2016 Is it necessary to deduct TDS even if the expense incurred is capital in nature?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

02 October 2016 Yes TDS applicable on capital expenditure also.

nitin

nitin (Expert)
Follow

02 October 2016 Hi

Tax is required to be deducted only in case those expenditure which has been claimed by the assessee while computing the taxable income of the assessee. In case of capital expenditure, depreciation is claimed by the assessee. There is no requirement to deduct TDS in case of capital expenditure.

Please let me know if you need any clarification.

Thanks
Nitin
Mob: 9654857485

Upgrade to CAclubindia Pro. Subscribe Now!

Expert : Anonymous

Expert : Anonymous (Expert)

02 October 2016 TDS is applicable based on the nature of payment made. capital expenditure is not a sine qua non for applicability of TDS. there. ay not be a disallowance under section 40(a) on account of non-deduction, but the provisions of section 201 would still apply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

02 October 2016 TDS provisions applicable on all expenses whether it is capital or revenue. In case of non deduction of TDS 30% of revenue expenditure will be dis allowed. Notice will be issued by IT dept for non deduction of TDS on capital ac.