TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2010
Suppose a provision for auditors remuneration is made in the month of March 2010 but TDS is not deducted and not paid till 31st may 2010 but it has been deducted when the bill is received in the month of June and paid in same month,so it is paid and deducted before 30th sept.2010 so whether it will be disallowed in FY 2009-10 or it will be allowed in the same year eventhough TDS is Deducted when bill is recvd. but it is paid before 30/09/10. Plz give section also

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

01 September 2010 It will be disallowed in FY 2009-10 or it will be allowed in the same year eventhough TDS is Deducted when bill is recvd. but it is paid before 30/09/10.

Refer section 40(a)(ia).

TDS should have been deducted in the last year only though paid now to be allowed in the last year.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

01 September 2010 TDS should have been deducted at the time of making the provision for audit fees during March,10 itself.

In that case, if the TDS is deposited before sept,10 alongwith applicable interest for late deposit, then this expenses would have been allowed for FY 2009-10.

In the current scenario, this exp will not be allowed, though, it can be claimed in FY 2010-11

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2010 thanx sir

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 For all of ur kind information sec 40a(ia) has been amended by finance act 2010 so even though TDs is not deducted in the month of march but it has been deducted and paid before 30th september 2010 then also it will be allowed as deduction in FY 2009-10

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 September 2010 read section 40(a)(ia) carefully and then state. It clearly states TDS deducted and not paid.

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 40a(ia)- it states that any int.,comm,brokerage,fees for prof sev,payable to a resident on which tax is deductible at source and such tax has not been deducted or after deduction such tax has not been paid on or before the due date u/s 139(1)
provided that where in respect of any sun tax has been deducted in any subsequent or has been deducted during the PY but paid after due date u/s 139(1) such sum shall be allowed as a deduction in the PY in which tax has been paid

So read the PROVISO carefull it clearly brings out the FACT that u may deduct tax in subsequent year in respect of Exp booked earlier but same should be paid before 30th sept

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 September 2010 tax is being paid in which year? Next year so deduction allowable also next year.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 plz refer provisions properly due date is 30th september

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 wht hppn no ans or what

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 September 2010 (ia) any interest, commission or brokerage, 91[rent, royalty,] fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, 92[has not been paid on or before the due date specified in sub-section (1) of section 139 :]
93[Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.]

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 September 2010 on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, 92[has not been paid on or before the due date specified in sub-section (1) of section 139 :]

Upgrade to CAclubindia Pro. Subscribe Now!

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 September 2010 The provision is applicable in case of expenses disallowed in previous year and on which TDS is deducted and paid in the current year.

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 no i dnt think so as i have confirmed from my sources u also confirm and let me know

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 September 2010 I do not need to confirm with anyone. If your think u are right then go ahead with it. I think i am right and will follow the same as the same is clear from the section itself no need for any clarification from anyone.

Upgrade to CAclubindia Pro. Subscribe Now!