tds on exp.capitalised

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mahavir (Querist)
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21 June 2008 one of client has incurred expenses for labour which has been capitalised but TDS on labour work has not been deducted.whether it will be disallowed under sec 40 a under IT Act.

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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21 June 2008 Yes

mahavir

mahavir (Querist)
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21 June 2008 i want some other expert opinion.

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DHANANJAY R

DHANANJAY R (Expert)
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21 June 2008 The Imp question is on which date TDS liability is arised?
If it is arised somewhere B/W April 2007 to Feb 2008 then Expenses will be definately disallowed u/s 40A.
But if the liability is arised in the month of March 2008 then as per new provisions, you can pay that liability before Filing of Return of Income (i.e. Liability with Interest on the TDS)and such expenses will not be disallowed