27 August 2010
Yes it should be reversed as provision is made for a specific liability and if the same does not occur over a reasonable period of time then the same should be written back.
27 August 2010
Rs. 10 ie TDS paid on provision will be my loss? can this be adjusted against TDS payable in the next month? or debit Rs. 10 to P&L as loss but under which head?
27 August 2010
See first expenses have been booked at Rs. 100 and TDS has been deducted Rs. 10 and creditors balance is Rs. 90/-.
So now u can reverse only creditors balance i. e. RS. 90/- and net expenses debited in the P & L is Rs. 10 i. e. Rs. 100 earlier debited and 90 now credited which is loss on account of TDS.
Since the TDS is of earlier year the same cannot be used as it is already booked in the name of the creditor and return for the same has already been filed.
CAclubindia
