TaxTMI 
TaxTMI 
Late deposit of TDS-Section 40A
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....ate deposit of TDS-Section 40A<br> Query (Issue) Started By: - Mukund Honkan Dated:- 15-10-2011 Last Reply Date:- 17-10-2011 Income Tax<br>Got 1 Reply<br>Income Tax<br>Company A is undertaking Turnkey....
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.... 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. Compan....
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....y 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 20....
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....11. 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 k....
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....now 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 i....
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....t is entitled for 2% commission and all the expenses are incurred on behalf of company B, then there may be an escape.<br> Discussion Forum - Knowledge Sharing ....