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TDS for F Y 2006-07 & deducted on 08.06.2007

Rajen (Professional) (122 Points)

09 June 2007

Dear All Member

We have received one labour charges bill for rs. 35000/- and one professional fees bill for Rs. 22500/- dt 31.03.07 received on 7the June 2007 pertaining to F Y 31.03.2007. My queries are...

(1) Shall I Pay TDS now (June 07) and get as a allowable exp for the

F Y 2006-07 ?

(2) If the answer (1) above is "NO" than what will be the procedure/law so I can

get as a allowable exp. for F Y 2006-07.

Pl dear member give me a solution AT MOST URGENT (Because TDS Annual return due date is 15 june 07)

Regards

Rajen

vora.rajen @ rediffmail.com

vora.rajen67 @ yahoo.co.in

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5 Replies

Sumit (33 Points)
Replied 09 June 2007

i think you should deposit TDS amount with one month interest because tds on payment credited on 31/3/2007 shall be deposited up to 31/5/2007 and now u r late so deposit tax with interest and filem return on 15th june. As tax is deposited before filling of return so will be allowed in A.Y 2007-2008.

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Asaithambi S (CA) (56 Points)
Replied 10 June 2007

My opinion is that those expenses will be disallowed during the current financial year and will be allowed in the year in which you pay tds.

Rajesh Bajaj (433 Points)
Replied 10 June 2007

you should deposit TDS with interest. You have to pay simple interest at the rate of 12 per cent per annum from 1st june 2007 to till the date of actual payment in terms of Section 201. TDS return cannot be submitted unless interest for late deposit of TDS is paid

Prakash Chandra Verma (ca) (34 Points)
Replied 11 June 2007

Expenses of the previuse year is not deductible in the current year. However payment of bill received is to be made with deduction of TDS. I find there no link between TDS and Deduction of exepnditure.