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Allowabilty of TDS

Om Prakash Singh (CA-FINAL STUDENT VARANASI) (370 Points)

21 April 2009

I have deducted TDS for the month of Feb 09 and march 09 but could not deposit same upto 7th April 09. Instead deposited as on 20/04/2009 with interest . Please tell me whether Exp will be allowed or not. whether TDS deductee will be entitled to claim the TDs which have been deposited by us after 7th April 09.

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7 Replies

madhur gupta (student/article ) (1022 Points)
Replied 21 April 2009

yes exp.will be fully allowed

now as per amendment u can deposit the march month t.d.s upto date of filing of return i.e.sept.30(if assessee is firm/co etc.)

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deepak K Gujrati (CA-practice) (966 Points)
Replied 22 April 2009

From the query it appears that TDS has been deducted in the Month of Feb & March. TDS deducted in the month of March where due date of deposit is within 60 days , can now be deposited before duedate of filing of return.

So any expense which has already been paid ( it is not accrual entry at the end of the year) will be disallowed if TDS not deposited within 7th of the next month.

shruti (CA) (80 Points)
Replied 22 April 2009

"So any expense which has already been paid ( it is not accrual entry at the end of the year) will be disallowed if TDS not deposited within 7th of the next month."

Deepak do you mean to say that if the Vendor has been paid within the month of March but the TDS in respect of that Vendor has not been deposited by 7th April but has been deposited by 20th April, then that expenses will be disallowed while computing income for 08-09

Pl clarify

Om Prakash Singh (CA-FINAL STUDENT VARANASI) (370 Points)
Replied 22 April 2009

Originally posted by :shruti
"	"So any expense which has already been paid ( it is not accrual entry at the end of the year) will be disallowed if TDS not deposited within 7th of the next month." Deepak do you mean to say that if the Vendor has been paid within the month of March but the TDS in respect of that Vendor has not been deposited by 7th April but has been deposited by 20th April, then that expenses will be disallowed while computing income for 08-09 Pl clarify	"

can we issue TDS certificate to the receiver of payment for the tds which i have deposited after Due date i.e as on 20th April 09

Milan Somani (CA) (1456 Points)
Replied 22 April 2009

yes

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Vinay Chopra (CA ) (197 Points)
Replied 23 April 2009

hi,

Expense for the month of feb will be disallowed , however for march it will be allowable as tds has been deposited before the due date of filing.

CA. Narendra Kumar (ACA ...ACS) (81 Points)
Replied 23 April 2009

exp vs. tds.

exp will allow to debit in accounts when tds is paid within 30 days if in case paid after such period wil allow in seceeding month or year in case paid after due date.