21 December 2010
We have certified our esi return for the period Oct'10 March'10 from our auditor. Audit sent their bill dt. 12.5.2010 as audit fees but we did not book this expenses previous year 2009-10. So my query is, can we book this amount in current period (2010-11) as prior period expenses and deduct tds on it and another question, is it prior period expenses when auditor sent bill on current year date ?
21 December 2010
Yes, its a prior period expense, you have to provide for audit fee in the previous year itself. If you treat it as prior period expense, it will be disallowed and then what is the need of TDS (as if you do not deduct TDS, the expense will be disallowed) as its already under disallowed expense.
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