Section 43 B applied or not on TCS?
CA Devendra Yadav (Audit Manager) (82 Points)
24 December 2009Section 43 B applied or not on TCS?
Amir
(Learner)
(4016 Points)
Replied 24 December 2009
Section 43 B applies on the expenses whereas Tax collection at source is not an expense... It is just an additional amount which you collect from your Debtor and deposit it with the Govt..
eg:- Journal Entries
a) At the time of collection
(1) Bank a/c............. Dr
To Debtor A/c
(2) Debtor A/c............. Dr
To TCS Payable
b) AT THE TIME OF DEPOSIT
TCS Payable a/c............Dr
To Bank A/c
In short 43 B applies only in case of deduction of an expenditure whereas in case of TCS "NO EXPENSE OR DEDUCTION IS INVOLVED"
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 24 December 2009
Hi amir, good explaination.... and correct too...
But, i think SEC 40 (A) wil b applicable, which is applicable in case of TDS
Amir
(Learner)
(4016 Points)
Replied 24 December 2009
Hi Dhirav, thankx for appreciating..
Again my friend the opening words of Sec 40 (a) says "THE FOLLOWING AMOUNT WILL NOT BE DEDUCTED IN COMPUTING THE INCOME........"
TCS is not a deduction
CA Vidyasagar B
(Assistant Manager )
(176 Points)
Replied 24 December 2009
Amir u r correct but section 40(a)(ia) wont applicable
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 24 December 2009
SECTION 43B IS NOT APPLICABLE ON TCS.
CA. Anshul Bajaj
(Taxation Head)
(173 Points)
Replied 29 December 2009
No Sec 43B Is Not Applicable on TCS as it is basically an collection...hence not an expense its a liability
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