Browny Processors (P) Ltd paid ₹4,50,000 as contract charges to Martin. It deducted tax at source @ 1% for the expenditure incurred up to 30th April, 2020 of ₹1,50,000 and did not deduct tax on the subsequent payments of
CS Executive · Tax Laws · PYQS · June 2021
Browny Processors (P) Ltd paid ₹4,50,000 as contract charges to Martin. It deducted tax at source @ 1% for the expenditure incurred up to 30th April, 2020 of ₹1,50,000 and did not deduct tax on the subsequent payments of ₹3,00,000 made during the previous year 2020-21. How much of the expenditure would be added to its income while computing the income of Browny Processors (P) Ltd of the assessment year 2021-22 ?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B), (D). Official source note: Both option B/D may be considered as correct. Option B is correct if Mr. Martin is Non-Resident. Option D is correct if Mr. Martin is Resident.
Topics: Income Tax
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