Help in TDS

Page no : 2

Shivish Verma (C A) (376 Points)
Replied 08 January 2011

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.

Dear Sharad,

you are absolutely right that 40(a)(ia) does not make any discrimination between capital and revenue exp, how can you disallow an amount which you never claimed as an expenditure.

I think, in this case, section 201(1A) interest and 271C are applicable only.

Its 271C and not 272 (as mentioned in previous reply)

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CA sonal (Job) (128 Points)
Replied 09 January 2011

hi,

I think,payments made to contractor will be disallowed if tax not deducted. If it is march payment of tds made upto date of filing return or if payment to contractor is a transaction between april to feb then payment of tax made upto 31st march then payment made to contractor will be allowed. sec-40(a)(ia). But depreciation is certainly allowed.

correct me if i am wrong.

rgds