40(a) - construction of building

 Dear all,

if TDS is dedcuted under 194C for the contract for constructing the office buiding but not remited within the date, should we disallow the payments to contractor.......... But its a acquisition of fixed asset..

Replies (1)

Hi Gopalakrishnan,

To disallow the patment to contractor will depend on the terms of contract. As for tax purpose you will only be allowed to claim it as deduction when remitted within due date then this assesment year or else next assesment year when payment is made to govt.

the work contract will come under 194C except for supply of material or goods.

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