if suppose a work contract is given to mr. a
his bill would be
services=Rs. 10000
+Service tax @ 10.3%=1030
total = 11030
TDS is deducted only on 10000
What will be the disallowed expenses-
1030 or 11030?
please quote text of particular section if possible
Only the amount on which tds has not been deducted will be dissallowed under income tax act
in your case 1030
Dis Allowance would be Rs.1030 only if it would have charged to P&L account. If service tax credit would have been taken by routing through current assets then it would not be disallowed even if no TDS is deducted.
| Originally posted by : CA Saiyum khan | ||
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Dis Allowance would be Rs.1030 only if it would have charged to P&L account. If service tax credit would have been taken by routing through current assets then it would not be disallowed even if no TDS is deducted. |
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agreed
Yes , I do agree with all of my above friends , but we can also claim deduction of service tax is such is deducted in subsequent year and paid before filing the return of income u/s 139(1) .For this disallowance you can also take the reference of section 40(a)(ia).
Can anyone please tel me where the part dissallowance is mentioned?
| Originally posted by : Anjaly.P.A | ||
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Can anyone please tel me where the part dissallowance is mentioned? |
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Refer Section 40(a) of IT Act.
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