Controversy between word PAID and PAYABLE-Section 40(a)(ia)

darshit (CA Student) (179 Points)

05 January 2009  

The Question relates to Section 40(a)(ia).The section says that the amount of expenditure will be disallowed when the amount of expenditure is PAYABLE and tax has not been deducted or when tax is deducted but has not been paid.

Now the Question is whether this section is applicable when amount of expenditure is PAID and tax has not been deucted or tax is deducted but has not been paid?

Please also refer to section 43(2)-Meaning of word PAID from Bare Act and Frequently Asked Questions Q.3 from Vinod.K.Singhania's Latest Professional Edition Page no.368, Para No. 143.2-3.