03 June 2014
A private company has made Fixed deposit with a BAnk of 1 crore on 3rd feb, 2014. Term of FD is 1 year. interest @ 9% compounded quaterly. Further, the confusion in making Finalisation of Balance sheet of this is :-
1) If we take accrued interest for feb to march 14,as per acrual acconting system, then how to claim tds cz Bank will pay Interest at maturity of FD & same for tds. 2) If we won't Take Accrued interest then its non- compliance of Accounting statndard & accouting rules.
1.) Bank should have to book his Interest Expense in the same year under "Interest Accrued but not Due" on the basis of Conservatism concept". So, bank will book Interest payable on 1 Crore for 56 Day @9%.
2.) U/S 194A, TDS should be deducted on amount when it is paid or accrued whichever is earlier. So, bank is under statutory obligation to deduct and deposit T.D.S on above Interest which is booked in his accounts.
3.) Company should also have to book the Income and T.D.S on that Income as its Assets, but it is preferable if booked after cross checking online with form 26AS.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
03 June 2014
But bank wont deposit tds for the same period. So, how to claim tds on tax liability