CA ANSHUL AGARWAL (Proprietor) (35 Points)
30 June 2011hey friends plz let me knw about a case.
Assume a payment is being made in case of work contract of 1,10,000/- i.e. 1,00,000 being contrct amount and 10,000 being service tax amount. TDS has been deducted on1,00,000/- but not on10,000/-. Will this amount to disallowance of whole expense ?
CA. Rajesh P. Ahir
(In Service @ PSU)
(687 Points)
Replied 30 June 2011
As per provision of Section 194C Payment Includes Payment of Service Tax included in the bill.
in Present case tax is to be deducted on 11000 (including ST). Here the Tax is deducted from the AMOUNT OF PAYMENT.(pAYMENT INCLDES ALL ITEMS COVERED IN THE biLL)
As the Tax has been dedducted but the mount of TDS is Less then what is required to be..
So whole of the expanse will be diallowed.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 30 June 2011
agree with above TDS deducted on gross Amt included service tax
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 30 June 2011
Once you pay the balance TDS on 10,000 the entire expenditure disallowed earlier can be claimed as deduction in the year of payment
CA Sanjay Jha
(ACCOUNTS MANAGER)
(914 Points)
Replied 01 July 2011
This is the case of short deduction of TDS,
You may receive shortly notice from TDS office and auditor also disclosed notes to account and Tax audit report that showing bad impression.
it is other matter that you must pay TDS with intrest and penalty (may be) when its discover/appear and correspondingly allow and disallow this expenditure.
CAclubindia
