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Clarification by CBDT regarding TDS deduction and payment
A recent circular issued by CBDT solves a lot of controversy created by some recent judgments regarding, deduction and payment of TDS, form payment made to employees being applicable only to the outstanding amount at the end of the year or to the total payment mad during the previous year. The CBDT has issued a Circular No. 10/DV/2013 dated 15.12.2013 in which it has analyzed the controversy created by recent judgments on the question whether the term “payable†in s. 40(a)(ia) includes the amounts that have already been paid during the year or it refers only to the amounts outstanding as at the year end. It is noted that while the Special Bench of the Tribunal in Merilyn Shipping 136 ITD 23 (SB) and the Allahabad High Court in Vector Shipping has taken the view that the disallowance in s. 40(a)(ia) does not apply to amounts that are already paid, a contrary view has been taken by the Calcutta High Court in Crescent Export Syndicate/ Md. Jakir Hossain Mondal and the Gujarat High Court in Sikandarkhan Tunvar. The CBDT has expressed the view that the disallowance u/s 40(a)(ia) would apply even to the amounts that have already been paid during the year. It is also clarified that if the High Court takes a view contrary to that taken by the CBDT, the CBDT’s view would not apply in that jurisdiction though steps should be taken to decide whether a SLP should be filed or legislative amendments made CBDT_Circular_TDS_Disallowance Thanks for reading for this article. Please feel free to write to us, We want to hear it all!Suggestions? Complaints? Feedback? Requests? at [info@taxmantra.com] or call us at +91 88208208 11. We would be more than happy to assist you.
Clarification by CBDT regarding TDS deduction and payment
Direct Taxes (including International Taxation) | By ALOK PATNIA | Last updated on Oct 5, 2017
Clarification by CBDT regarding TDS deduction and payment A recent circular issued by CBDT solves a lot of controversy created by some recent judgments regarding, deduction and payment of TDS, form payment made to employees being applicable only to the outstanding amount at the end of the year or to the total payment mad during the previous year. The CBDT has issued a Circular No. 10/DV/2013 dated 15.12.2013 in which it has analyzed the controversy created by recent judgments on the question whether the term “payable†in s. 40(a)(ia) includes the amounts that have already been paid during the year or it refers only to the amounts outstanding as at the year end. It is noted that while the Special Bench of the Tribunal in Merilyn Shipping 136 ITD 23 (SB) and the Allahabad High Court in Vector Shipping has taken the view that the disallowance in s. 40(a)(ia) does not apply to amounts that are already paid, a contrary view has been taken by the Calcutta High Court in Crescent Export Syndicate/ Md. Jakir Hossain Mondal and the Gujarat High Court in Sikandarkhan Tunvar. The CBDT has expressed the view that the disallowance u/s 40(a)(ia) would apply even to the amounts that have already been paid during the year. It is also clarified that if the High Court takes a view contrary to that taken by the CBDT, the CBDT’s view would not apply in that jurisdiction though steps should be taken to decide whether a SLP should be filed or legislative amendments made CBDT_Circular_TDS_Disallowance Thanks for reading for this article. Please feel free to write to us, We want to hear it all!Suggestions? Complaints? Feedback? Requests? at [info@taxmantra.com] or call us at +91 88208208 11. We would be more than happy to assist you.