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Excerpt: Goluguri Kodanda Rama Redddy of Hyderabad asks ”One of the assessees paid transport contract amount without deducting TDS.However he remitted TDS to central government account out of his own funds by debiting the transport expenses. On perusal of ledger account of transport expenses ,the above fact of inflation of expenses by TDS amount came to the notice. Whether the TDS liability included in the transport expenses is an allowable expenditure while computing the income under the head ” Profits and gains of business”. In my opinion , tax deduction at source for the payer is legal compliance and it is not an…
