Hi. I feel like I have been paying extra amount from my pocket to the IT department as TDS. Please help me. My question is as follows:
I am paying to Non Residents ( u/s 195 Royalty ) who does not have Establishment and PAN in India. I am grossing up and paying TDS from my pocket. Can you please tell me the Extra amount which I am paying from my pocket as TDS to department , Can I show that TDS part as Business Expense? Kindly give Income TAX notification for the same if answer is "YES".
Example: Say Invoice Amount = 1000 USD = 65000 INR TAX Rate = 20 % Grossedup Amount calculated = 81250 INR ( 100/ ( 100-20) x 65000 ) TDS amount = 81250 - 65000 = 16250.
So I am paying INR 16250 from my pocket to department. Can I add this amount i.e INR 1625 in my Business Expense? or is there a way to not pay this amount
Jan. 04, 2018