13 Replies
CA VINAY BANSAL
(In job with KPMG)
(289 Points)
Replied 14 June 2010
partial disallowance..................
saranraj
(CA FINAL)
(419 Points)
Replied 14 June 2010
Friends in which section they have said about partial or full disallowance????
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 14 June 2010
As per Section 40 of Income Tax Act, 1961 expenses will be fully disallowed if the part of the TDS is also not deducted.
Ritesh Maheshwary
(CA Final Student (Article Traniee))
(82 Points)
Replied 14 June 2010
It will be partially disallowed as on part of the payment TDS has been deducted.
calculation of dissallowance U\s 194C = (TDS Deducted / 2.26) - total Expenses Amount.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 14 June 2010
partially disallowed..........
manisha grover
(CA Finals )
(61 Points)
Replied 15 June 2010
if TDS is remitted in excess of the prescribed rates wat wud the treatment of the same?
How the adjustment will be made in TDS return and books of accounts?
gopal gupta
(chartered accountant)
(23 Points)
Replied 15 June 2010
While presenting the case you should split total expenditure in to two components being on on which tds is fully deducted and other on which no tds is deducted. Then you will be eligible for full deducation of expenditure on which full tds is deducted and the disallowance for the amount on which tds is not deducted.
Sandeep Kumar
(learner)
(81 Points)
Replied 15 June 2010
Fully disallowed....................................
ashish
(audit assistant)
(25 Points)
Replied 15 June 2010
hey, first of all i want to know u that there is no surcharge and cess on tds as per finance act,2009.
means ther is a flat rate of tds.
and if deductor deduct partially tds then according to tds provision, partially expenses are allowed .
Anand Patel
(CA)
(26 Points)
Replied 15 June 2010
@ Manisha:
I assume that excess TDS deducted is also paid to the Govt.
If its one time transaction then there is no issues, the payment will be net of TDS actually deducted.
If there are regular transactions are with the party, the excess TDS paid can be adjusted against future payments.
Now assume that tax has to be dedcuted @ 5% but you dedcuted and paid TDS @ 10% on Rs.100/-
Now, you should change the TDS entry for Rs.5 replacing original entry for Rs.10.
Assuming you have paid Rs. 90 (100-10) to party, there will be credit balance of Rs.5 in his account.
You will pay this Rs.5 over and above payment due to party for his next transaction (after dedcuting TDS).
TDS payable account will show debit balance of Rs. 5 and that can be adjusted your future liability.
In TDS return, the TDS dedcuted and paid will be shown as Rs.5 in dedcutee sheet and challan details will be actual.
When the another Rs.5 is adjusted, the same challan will be refered in TDS return.
PRATEEK
(ACA)
(102 Points)
Replied 17 June 2010
if the tds amt is partially paid then the full expenditure will be disallowed,there is no concept regarding partial allowance in income tax act
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