bhumika (studying plus part time job) (119 Points)
19 January 2009If Printing & Stationery A/c is Debited toward some Digital Printing & toward Visinting Card for Business & the Expenses is above Rs. 20000/-
Is it right to Debit Printing & Stationery A/c or We should debit Advertisement Exp A/c or Business Promotion A/c
Does it Liable for FBT? If Yes at same rate of 20% or Diff
Does the payment is liable to TDS?
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 22 January 2009
Printing of visiting cards is not in the scope of 115WB(2)9D) of the Income tax Act, 1961. The is not Liable to FBT.
You should book the above Exp in the head of Advertisement Exp.
If the single payment exceed Rs. 20000/- then TDS provision will be applicable and you have to deduct TDS @ 1% + 10% surcharge(If the payment in a year exceed Rs. 1 crore)+2% Education cess and 1% Higher education cess.
CAclubindia
