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?
5 Replies
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%.
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
