Pre Incorporation Salary Paid

TDS 981 views 4 replies

Our Company paid salary before incoporation(registration) to employees for 3months

and the same is treated as preliminary expenditure

is the tds has to be deducted on such salary

please reply soon as it is very urgent

Replies (4)

TDS will not applicable in this case... because company incorporate later and TDS not applicable in premilary expenses.

thank u for ur reply

 

is there any specific provision or section applies in this regard

there is no specific section or provision for this, u just need to amortise preliminary expenses in certain time period.

But i want to know

which period as to be covered in form 16

please reply soon i need to prepare form 16


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