Late deposit of TDS-Section 40A

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..... Late deposit of TDS-Section 40A
Query (Issue) Started By: - Mukund Honkan Dated:- 15-10-2011 Last Reply Date:- 17-10-2011 Income Tax
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Income Tax
Company A is undertaking Turnke .....

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..... y contracts & offloading 100% work to its JV partner 'Company B' after keeping margin of 2%. In the year end March 2011, job worth Rs. 10 crores executed by Company A & offloaded to Company B. Compa .....

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..... ny B accounted contracting income of Rs. 9.80 crs which in turn is expense of Company A. Company A has to deduct TDS @ 2% from Rs. 9.80 crs i.e. Rs.19.60 lacs but deposited the same on 5th October 2 .....

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..... 011. Since TDS is not deposited before 30th Sept 11, entire expenses get disallowed and Company A is liable for Income tax on Gross Income of Rs. 10 crores which will be around Rs. 3 crores. Can we .....

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..... know what is the way out so that Rs. 3 crores can be saved? Regards, Mukund M Honkan Reply By GOPALJI AGRAWAL: The Reply: Only terms of the contract will decide the fate. If Company A claims that .....

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..... it is entitled for 2% commission and all the expenses are incurred on behalf of company B, then there may be an escape.
Discussion Forum - Knowledge Sharing .....

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