Second proviso to section 40(a)(ia) is applicable retrospectively Q : Whether the second proviso to Section 40(a)(ia) (inserted by the Finance Act, 2012), which states that TDS shall be deemed to be deducted and paid by a deductor if resident recipient has disclosed the amount in his return of income and paid tax thereon, is… Read More »
Section 40(a)(ia) No disallowance of expense if Income is Exempt Q When the income of the Assessee is exempt, Whether any disallowance of expenses under section 40(a)(ia) can be made for non deduction of TDS ? Assessee’s total income is exempt under section 10(26), for assessee’s lapse of not complying with his tax withholding obligations,… Read More »
TDS on Provision for Expenses Q : Whether there is TDS on Provision for Expenses created in the books ? For TDS on Provision for Expenses we have to read Section 190, with sections 4, 40(a)(i), 40(a)(ia) and 201, of the Income-tax Act, 1961 Subject : Deduction of tax at source /Suspense acccount Assessment years 2006-07… Read More »
TDS on VSAT /lease line charges paid to NSE/BSE Question : Whether TDS is required to be deducted on Fees for professional or technical services (VSAT charges) paid to NSE/ BSE? There is no requirement to deduct tax at source from payments made to NSE/BSE towards VSAT charges and lease line charges under section 194J… Read More »
Question: Where assessee-company made payment to a foreign company without deduction of tax at source on basis of certificate issued by Chartered Accountant, same was a bona fide mistake and hence, assessee was not liable to penalty for concealment of income ? Answer Yes, When it was found that Chartered Accountant had given a certificate to… Read More »
Requirement to deduct tax at source under section 194C is mandatory and, in case of assessee’s failure to do so in respect of contractual payments, disallowance has to be made under section 40(a)(ia) irrespective of fact as to whether assessee is following cash or mercantile system of accounting HIGH COURT OF PUNJAB AND HARYANA P.M.S.… Read More »