24 September 2009
Sir, We have make a provision of some expenses like Freight outword, Comm. Payable ect.
This provision is made after 31-05-2009 in books of account for the year 2008-2009.
Now my query : My Auditors is said please show the liability of TDS on such provision on which TDS is applicable. If I make provision of TDS , To whom I to credit the TDS Certificate for the FY 2008-09. Should any law permit TDS on provision after 31-05
24 September 2009
issuing the tds certificate then secondary task. Just make the provision for tds pay the tds to govt. And then start getting the details of person to whom the credit needs to be given, then file the tds return & issue the form 16A.
This is the kind of adjustment in the income tax liability by showing the o/s expenses, but get the deduction of the same you need to pay the tds amount to the govt, other wise the same will be disallowed u/s 40(ia).
25 September 2009
Sir, As per my knowleged tds is not deducated on provision it deducted on expenses or payable expenses.Provision is different thing E.G. Audit fees provision is more then 100000 Rs but Tds not deducted by public or privale limited company based on the provision. Correct me if i am wrong.
Privision for any expenses for F.Y 2008-09 was to be made before 31.03.2009, except anything falls under event occuring after balance sheet date.
Now TDS payable for some expenses credited on 31.03.09 can be paid within 31.05.2009( due date). If it was not paid/deposited then the total expenses, on which tds eas payable, will be disallowed.
e.g.TDS on audit fees payable for 08-09, if not deposited within 31.05.09 then audit fees payable will be added back to your profit.
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