TDS

if tds is not deducted than full amt. will be disallowed

Amount will be disaalowed on which TDS not deducted.

eg. If you paid Rs 100000/-  as professional fees. You are supposed to deduct Rs 10000/- TDS u/s 194J. if you do not deduct any amount, whole expenditure of Rs 1L will be disallowed. if you deduct TDS Rs 6000/-, then you have deduted TDS of amount of Rs 60000 properly. Hence, only Rs 40000 will be disallowed.

Note - Whenever you deduct TDS in next year, you will get the benefit of expenditure. It will be allowed.

Thanks

If I didnt deduct TDS in AY 2010-11, and deduct in AY 2011-12 on same, then it will be allowed?

Yes...it will be allowed!!!

yes it will be allowed 

KIND ATTN: Future CA and Abhishek,

Andhadhun hawa me teer mat chalaya karo......

You can claim the same only in one condition that when if you have made provision of the same in last year. E.G. expense of rs. 100000/- pertains to FY 2009-10 and liable to deduct tds also. But you have not recorded the same in books of accounts and consider the same in FY 2010-11, so in this case Income Tax department will disallow this amount as PRIOR PERIOD EXPENSE. To avoid such case you need to make provision for the same in FY 2009-10 as follow:

IN FY 2009-10

Consultancy Charges Dr 100000/-

To TDS Professional Cr     10000/-

To Provision for Expenses Cr 90000/-  (Should be classified in Current Liabilities)

IN FY 2010-11

Provision for expenses Dr 90000/-

To Vendor    Cr                        90000/-

Please correct if i am incorrect MR. Abhishek and Future CA.

suppose consultancy chgs paid 100000 to vendor and tds not deducted and paid in fy 9-10.

what can be done in fy 10-11so that expense will be allowed for fy9-10

Can we show 10000 receivable from consultant. pay tds 10000 to govt till filing of return. will 1lac be allowed

@ Roopali: As far I think, there is no problem in claiming deduction if you pay the TDS amt before the date of filing return. You can do this. But ultimately you will be losing your Rs.10000 if the vendor disagrees to pay you although he will be enjoying the benefit of the TDS.