TDS

This query is : Resolved

Bhaven (Querist)
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29 April 2011 If we are maintaining books on cash basis and other party is deducting TDS on fees for the year, which we will receive in next year.

Whether we can claim that TDS in the year in which it is deducted. if yes what will be the accounting entry.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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29 April 2011 I am giving you one example, you will understand.

"A" company is making a provision for audit fee & deducting TDS in one FY. Auditor submits the actual bill for audit in the next FY (after audit). The auditor books this income in the year in which he has raised the bill.

Now the situation : "A" issues form 16A for Last FY, whereas the auditor shows is as income of current FY. So he will take the credit of the same TDS in current FY only.