Hi i have a client having been liable to deduct TDS on the machinery constructed through a contractor. I would like to know that if he doesnt deduct TDS whether he can claim Depreciation
18 Replies
Devendra
(Chartered Accountant)
(4775 Points)
Replied 05 January 2011
Your client can claim depreciation on the Machinery. But the expenditure capitalized will be disallowed u/s 40(a)(ia).
(Guest)
| Originally posted by : Devendra | ||
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Your client can claim depreciation on the Machinery. But the expenditure capitalized will be disallowed u/s 40(a)(ia). |
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agreed
Anil Sharma
(Accounts Officer)
(62 Points)
Replied 06 January 2011
Your Client Should deduct TDS, otherwise expenditure capitalized will be disallowed u/s 40(a)(ia). It's true......
Pankaj Arora
(Learner)
(3134 Points)
Replied 06 January 2011
you client should deducts tds u/s194c and deposit same with interest otherwise it will be disallowed u/s40(a)(ia)
SUNNY
(CA Final & CS Professional)
(327 Points)
Replied 06 January 2011
Your Clint Shud deduct TDS otherwise it will be disallowed
chirag siroya
(IPCC student)
(34 Points)
Replied 06 January 2011
I am completelly agree with DEVENDRA
CA. Santosh Prajapati
(Practice)
(97 Points)
Replied 06 January 2011
Disallowance is for revenue expenditure, not for capital expenditure, so i think disallowance will not come. pls currect if i am wrong.
Vikas Marele
(CA in Service)
(1144 Points)
Replied 06 January 2011
Agreed with santosh. I think ur right santosh...1
Sharad Suman Das
(art)
(141 Points)
Replied 06 January 2011
Agreed with devendra,
Not agreed with Mr. Santosh as sec.(a)(ia) does not makes any discrimination between capital and revenue expenditure and it covers "payments to contractors/Sub contactors.
Shivish Verma
(C A)
(376 Points)
Replied 08 January 2011
captilasation of amount is not expenditure, hence the amount can not be disallowed as it was never allowed as deduction. 40(a)(ia) has no application in this case
however, person will have to face the other consequences. like penal provisions of section 272
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