12 April 2010
Whether TDS is required to be deducted when quaterly accounts are prepared and provision for interest is made but the same is reversed on the next day
TDS shall be made at the time of payment of the interest or credit to the account of the payee whichever is earlier. However, TDS once made on payment should not again be made on the same amount at the time of credit and vice versa. Since you are reversing the entry you are not required to deduct TDS. It should be deducted either at the time of payment or to the account of the payee.
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