Whether payment made to Newspapers agency for publishing Legal notices which the company is legally bound to make,be debitted to "Publicity & advertisemnt A/c" or " Legal Expense A/c". Also, TDS to be deducted at what rate and under which section?
Jayesh Lalwani (Article) (26 Points)
11 February 2012Whether payment made to Newspapers agency for publishing Legal notices which the company is legally bound to make,be debitted to "Publicity & advertisemnt A/c" or " Legal Expense A/c". Also, TDS to be deducted at what rate and under which section?
Tanash Chakraborty
(KPMG)
(292 Points)
Replied 12 February 2012
yes it is legal expense so it shall be disclosed seperately and not under any commmon expenditure a/c
Arihant
(Business)
(207 Points)
Replied 18 February 2012
legal exp + tds u/s 194 C @ 2% (presuming that newspaper agency is not individual/ HUF)
Jayesh Lalwani
(Article)
(26 Points)
Replied 20 February 2012
1.The nature of expense is "Publicity & advertisement" whereas the purpose is"Legal".
And we normally go for nature wise accounting & not purpose wise accounting.
2.Apart from that, accounting it in " Legal exp " & deducting TDS @ 2% will may attract disallowance in Tax audit report, creating further complexities from it dept.
So.kindly reclarify ur stand to account it as LEGAL EXP & deduct TDS @ 2%.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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