Tag Archives: section 40(a)(ia)

Apply TDS u/s 194J on provision for Audit Fees :ITAT Chennai

By | April 17, 2018

On perusal of section 194J of the Act, we find that tax is deductible at source either at the time of credit of expenditure to the account of the payee or at the time of payment whichever is earlier. In the instant case, the assessee had made provision for audit fees to the account of… Read More »

Definition of “ payable ” under section 40(a)(ia) – SC Judgment

By | May 9, 2017

Definition of “payable” under section 40(a)(ia) The Supreme Court of India addressed the term “payable” when there is a requirement to withhold (deduct) tax at source and remit the withheld tax to the government. Section 40(a)(ia) applies not only to situations when the amount is “payable” but also when it is “paid”. The case is:… Read More »

40(a)(ia) disallowance for TDS default even if no sum payable at year end; SC

By | May 4, 2017

Held Section 40(a)(ia) covers not only those cases where the amount is payable but also when it is paid. SUPREME COURT OF INDIA Palam Gas Service v. Commissioner of Income-tax A.K. SIKRI AND ASHOK BHUSHAN, JJ. CIVIL APPEAL NO. 5512 OF 2017 MAY  3, 2017 Raj Kumar Mehta and Ms. Himanshi Andley Advs. for the… Read More »

Non filing of 15G/15H would not invoke disallowance u/s 40(a)(ia)

By | November 2, 2016

Held ”Since separate provisions were prescribed on default for non-filing or delayed filing of Form 15G/15H to Commissioner. non filing of such form would not invoke disallowance under section 40(a)(ia) and that where person responsible to deduct TDS received declaration in form 15G/form 15h non-filing or delayed filing of such form before Commissioner would not… Read More »

Disallowance of income component in case of Non Resident u/s 40(a)(ia) : CBDT

By | October 29, 2016

F.No.500/39/2015 (US FT & TR-V) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Foreign Tax & Tax Research –II FT & TR-V Division New Delhi, 26th of October, 2016. To All the Pr. Chief Commissioner of Income Tax / Pr Director General of Income Tax Sir Madam, Sub: Withholding… Read More »

Disallowance under section 40(a)(i)/(ia)/(iii) for non Deduction of TDS

By | October 16, 2016

Disallowance under section 40(a)(i)/(ia)/(iii) for non Deduction of TDS Disallowance under section 40(a)(i)/(ia)/(iii) Section 40(a) provides that in the case of any assessee following amounts shall not be deducted in computing the income chargeable to tax,— (i)           any interest, royalty, fees for technical services or other sum chargeable under this Act, which is payable,—… Read More »

Club membership fee paid for employee is admissible business expenditure

By | August 1, 2016

IN THE ITAT MUMBAI BENCH ‘F’ Foods and Inns Ltd. v. Assistant Commissioner of Income-tax, Circle 10(2), Mumbai JASON P. BOAZ, ACCOUNTANT MEMBER AND SANDEEP GOSAIN, JUDICIAL MEMBER IT APPEAL NOS. 1262/MUM/2011, 6629/MUM./2012 & 6271/MUM./2014 [ASSESSMENT YEARS 2007-08, 2009-10 & 2010-11] JUNE  7, 2016 Keshav B. Bhujle for the Appellant. G.M. Doss and S.R. Kirtane… Read More »

No Disallowance u/s 40(a)(ia) when books rejected and income estimated

By | July 31, 2016

IN THE ITAT KOLKATA BENCH ‘A’ Future Distributors v. Principal Commissioner of Income-tax, Kolkata P.M. JAGTAP, ACCOUNTANT MEMBER AND S.S. VISWANETHRA RAVI, JUDICIAL MEMBER IT APPEAL NO. 277 (KOL.) OF 2016 [ASSESSMENT YEAR 2010-2011] JULY  29, 2016 S.K. Tulsiyan, Advocate for the Appellant. Sachchidananda Srivastava, for the Respondent. ORDER P.M. Jagtap, Accountant Member – This… Read More »

Trust claiming exemption u/s 10(23C), No Section 40(a)(ia) Disallowance

By | July 29, 2016

Held The assessee was registered under section 10(23C)(iv) of the Act and claimed exemption under the said Act. Similarly, in assessment years 2009-10, 2010-11, since the assessee was registered under section 12AA of the Act, the income was claimed to be exempt under section 11 of the Act. It is also a fact on record… Read More »

Payment for purchase of software is not royalty/ fees for Technical Services, hence no TDS u/s 195

By | July 27, 2016

Held AO/DRP have erred in treating the acquisition of software under the head ‘fee for technical services/royalty’ requiring the assessee to pay the tax on the same. [para 30] IN THE ITAT DELHI BENCH ‘I-1’ SAIC India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle 7(1), New Delhi KULDIP SINGH, JUDICIAL MEMBER AND N. K.… Read More »