A CONTRACTOR (FILING ITR IN INDIVIDUAL CAPACITY ) HAS DONE THE FOLLOWING IN FY 10-11 TO SHOW Rs. 10 CRORES AS EXPENDITURE.
PAID Rs. 10 CRORES TO SUB-CONTRACTORS AND DEDUCTED TDS Rs. 10 LACS
DETAILS OF PAYMENT BEING :
---- 9.5 CRORES FOR CONTRACT WORK TO 5 INDIVIDUALS AND 1 FIRM
---- 0.5 CRORES FOR TRANSPORTATION TO 1 FIRM
---- ALL PAYMENT OF 10 CRORES SHOWN AS PAID ON 31ST MARCH 2011
TDS PAYMENT DATE : 28 SEP 2011
TDS CERTIFICATE ISSUE DATE (WITHOUT SIX DIGIT NUMBER OF TIN) : 29 SEP 2011
TDS RETURN FILING DATE : 14 OCT 2011
TAX AUDIT DATE 29 SEP 2011
QUERIES :
(1) WHAT CAN BE THE CONSEQUENCES OF THE ABOVEMENTIONED TRANSACTION FROM THE POINT OF ASSESSEE WITH RESPECT TO :
-- EXPENDITURE ALLOWABLE OR NOT
-- ALL PAYMENT SHOWN ON 31 MARCH 2011
(2) WHAT CAN THE ASSESSEE DO NOW TO DEFEND THE ABOVE TRANSACTION POSITIVELY ?
THANKS IN ADVANCE FOR DISUSSING THIS INTERESTING SITUATION.
CAclubindia
