
Dear Professional Seniors & Friends,
Warm Greetings!
Here is the Next post of #MCQ on concept based practical professional knowledge on disallowance of expenses in case of no TDS deduction in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.
MCQ 58.1: Indian company has to pay professional fees to a UK firm. The UK firm has rendered services partly in India and partly in UK. The total fees payable is Rs 1,00,000 out of which Rs 25,000 was taxable in India, but Indian co, fails to deduct TDS.
A) Indian co. needs to deduct TDS on Rs 25,000, failing which full amount of Rs 1,00,000 will be disallowed.
B) Indian co. needs to deduct TDS on Rs 1,00,000, failing which full amount of Rs 1,00,000 will be disallowed.
C) Indian co. needs to deduct TDS on Rs 25000, failing which amount of Rs 25,000 will be disallowed.
D) Indian co. needs to deduct TDS on Rs 1,00,000, failing which amount of Rs 25,000 will be disallowed.
MCQ 58.2: What if in the above question, Indian company is paying professional fees to an Indian Firm of Rs 1,00,000 and fails to deduct TDS on the same.
A) Indian co. needs to deduct TDS on Rs 30,000, failing which full amount of Rs 1,00,000 will be disallowed.
B) Indian co. needs to deduct TDS on Rs 1,00,000, failing which full amount of Rs 1,00,000 will be disallowed.
C) Indian co. needs to deduct TDS on Rs 30,000, failing which amount of Rs 30,000 will be disallowed.
D) Indian co. needs to deduct TDS on Rs 1,00,000, failing which amount of Rs 30,000 will be disallowed.
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CA Sanjay Kumar Agrawal
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Dear Professional Seniors & Friends,
Warm Greetings!
This post of MCQ is on provisions relating to disallowance of expenses where TDS is not deducted.
Answer to MCQ 58.1: C) Indian co. needs to deduct TDS on Rs 25000, failing which amount of Rs 25,000 will be disallowed.
Answer to MCQ 58.2: D) Indian co. needs to deduct TDS on Rs 1,00,000, failing which amount of Rs 30,000 will be disallowed.
Practical Analysis for MCQ 58.1:-
Based on the above analysis, correct answer MCQ 58.1: C) Indian co. needs to deduct TDS on Rs 25000, failing which amount of Rs 25,000 will be disallowed.
Practical Analysis for MCQ 58.2:-
Based on the above analysis, correct answer MCQ 58.2: D) Indian co. needs to deduct TDS on Rs 1,00,000 failing which amount of Rs 30,000 will be disallowed.
(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)
Sincere Regards!
CA Sanjay Kumar Agrawal
Mobile: 9810116321
To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal
For All MCQ post please click on:
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