CA Ghanshyam Joshi (CA, Dip IFR (ACCA UK)) (3229 Points)
14 November 2010If TDS Short Deducted and paid to the credit of the government, say TDS has to be deducted at 10% but wrongly deducted at 2% and the amount deducted was paid to the credit of government within due date. Question is - whether the full expenses will be disallowed under section 40(a) or prorata expenses will be disallowed?
CA Ghanshyam Joshi
(CA, Dip IFR (ACCA UK))
(3229 Points)
Replied 14 November 2010
please reply with quoting the relevant section.
Ravikant
(IPCC Student )
(34 Points)
Replied 15 November 2010
Hello
The said expenses will be disallowed under section 40(a) on prorata basis.
Vishal G. Agarwal
(Article Assistant)
(33 Points)
Replied 15 November 2010
There are two views on this:
1) T.d.s deducted with inadequate amount is equal to T.D.S. not deducted and the whole expense shall be disallowed.
2) Disallowance on pro rata basis
"I will prefer to the 1st option and I will disallow the whole expense.
CAclubindia
