TDS for Purchase of Furniture

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PRIYA (Querist)
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29 September 2008 Dear Sir,

I have made a office cabinet through contractor and the value including labour charges amounted to Rs.25000/-. I have debited it to furniture account. Should i deduct tax when i make payment and if i dont will there be any disallowance.

Regards,
Priya

Taxguy

Taxguy (Expert)
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29 September 2008 TDS as per 194C is warranted.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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29 September 2008 It is a capital expenditure not claimed as exp. in profit and loss account.........so no question of disallowance

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Ravikumar.G

Ravikumar.G (Expert)
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29 September 2008 Amounts paid to a contractor or sub contractor for carrying out any work (including supply of labour for carrying out any work. Your case if it is a single bill TDS will attract.

Ravikumar.G

Ravikumar.G (Expert)
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29 September 2008 Failure to deduct the whole or any part of tax at source : Penalty u/s 271C will attract i.e sum equal to the amount of tax which he failed to deduct.