S. 40(a)(ia) TDS Disallowance: CBDT Issues Circular To Clarify Stand
The CBDT has issued a Circular No. 10/DV/2013 dated 15.12.2013 in
which it has analyzed the controversy created by recent judgements 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.
No comments:
Post a Comment