21 May 2009
Dear Sir, I would like to know that I pay advance payment against transportation exp but expence booked in next F.Y (09-10), i not deducted TDS on payment time because expence not raise and due to this there is no problem of disallow of expence, so it is correct or not?
21 May 2009
As per the bare provision TDS needs to be done at the time of credit of payment whichever is earlier.Also as per sec 40(a)(3) failure to deduct tds as per chapter XIIB attract the disallowance provision.
21 May 2009
thanks.. but sir i booked expences in current year (09-10) with tds deduction, so expence not booked in 08-09, only payment pay to party so the question for disallow of expence not raise due to not booking of expence in 08-09 it is correct?
CAclubindia
