here's a small query. Please suggest some solution. a company issues a performa invoice to a party in March 2012. The party deducts TDS on that amount and deposits it. But the services are provided in April 2012 and the original invoice is also raised in the month of April. The deductor company shows that amount in the return of FY 2011-12 but the company providing services has booked it in the next year i.e. 2012-13 as the invoice was raised in that year. How and in which year can the deductee company claim the TDS?
01 June 2012
In your case the company has issued proforma invoice so it can be safely assumed that the company has received advance payment.As such you need to show advance payment as current liablity as the work has not been completed in March and on this basis you can claim TDS in the income tax return.Since final invoice has been issued in April so recognise whole invoice amount as income during April and adjust with the TDS amount already claimed.
01 June 2012
No advance has been received by the company. It was just like an estimate that the company sent to the party. in this case, what should we do?
01 June 2012
Please go through the following:- F.No. 142/22/2008-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes
The Board have decided that, henceforth, claim for TDS and TCS shall be allowed only if the– (i) amount has been deposited by the deductor / collector; (ii) information relating to the deductee has been furnished by the deductor / collector; and (iii) claim matches the information furnished by the deductor / collector.
CAclubindia
