11-17-2011, 10:40 PM
According to s.153, when a company makes payment with respect to sale of goods, it is liable to deduct tax. Whether the goods fall within the category of fixed asset or current assets is not relevant.
As long as property falls , within the scope of "goods", tax is to be deducted while making payment for it.
When bank orders for computers, while making payment <b>it will deduct tax</b>; as the computers fall withing the category of goods.
When Z Limited , makes payment for goodwill ,<b>it will not deduct</b> tax as goodwill is not goods
When Y Limited, makes payment for immovable property , <b>it will not deduct</b> tax because immovable property is not goods.
As long as property falls , within the scope of "goods", tax is to be deducted while making payment for it.
When bank orders for computers, while making payment <b>it will deduct tax</b>; as the computers fall withing the category of goods.
When Z Limited , makes payment for goodwill ,<b>it will not deduct</b> tax as goodwill is not goods
When Y Limited, makes payment for immovable property , <b>it will not deduct</b> tax because immovable property is not goods.
