TDS on capital expenditure

Dhami Sahiba,

Thanks for making me chuckle in this dreary afternoon! Depreciation will not be disallowed just because you failed to make TDS on the capital expenditure. Depreciation is claimed u/s 32; disallowance of revenue expenditure is done u/s 40a(ia) for expenses mentioned therein. For that matter, if you buy a Maruti car for Rs 2.50 lacs making the payment in cash, will the depreciation on it be denied to you? Nahi Nahi. Shrimati Depreciation is a class apart; she's not to be treated at par with other revenue expenses. Section 32, the abode of Her Highness, is a very special section that lesser sections of the Income Tax Act can't trespass into. To claim depreciation, all you've to do is satisfy the conditions laid down therein—that is the asset must be owned by the assessee; it must be put to use, etc. Nowhere in Section 32 it is stated TDS should've been deducted on the component of capital expenditure on which it was deductible; or that payment for the asset should've been made through account payee cheque or blah blah blah.
Thanks,
CA Sanjeev Bedi
--- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, dharmishta jadav wrote:>> Dear Sir,> > If that is the case then,if my client has not deducted TDS U/s 194C on payment to contractors, will the depreciation calculated on the capital expenditure be disallowed!! Please give some supporting case laws or circular if any> > > Yes, TDS is applicable irrespective of nature of expenses-revenue or capital.> > Regards / Sanjay Dudhoria> > > > Dear Memebers,> > Is TDS deducted on capital expenditure! !!In case TDS is applicable > what in case allowance of depreciation? Would that be allowed or not!!!