Where an assessee being an Indian company has not deducted TDS on salary which is paid to its employees being resident indians, then whether such salary shall be allowed as business expenses?
5 Replies
Shyam Lal Naik
(Service)
(6156 Points)
Replied 05 October 2009
It will be allowed.
The disallowance provision is not applicable in case of TDS under section 192B.
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 05 October 2009
yes, I agree with the above solution.
for further clarification pls find the relevant extraxt of the Act,
Section 40(a)[(iii) any payment which is chargeable under the head Salaries, if it is payable
(A) outside India; or
(B) to a non-resident,
and if the tax has not been paid thereon nor deducted therefrom under Chapter XVII-B;]
punam
(article assistant)
(56 Points)
Replied 27 October 2009
I agree with the above solutions given in this issue, as Sec 40(a) doe not cover salaries. Hence Salaries shall be allowed even if TDS is not deducted.
VIPUL
(ARTICLE ASSITANT)
(68 Points)
Replied 26 December 2009
salary will be allowed as business expenditure. because it is outside the purview of section 40(a)
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 26 December 2009
Yes, salary will still be an allowed expenditure.
Recent Topics
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
Related Threads
CAclubindia
