My company was paid advance payment of freight and deduct TDS on full freight amount.
is our treatment is right.
Whereas Our auditors have objection on it. they are saying TDS should be deduct only on advance freight payment or you have to credit also balance freight payment.
07 May 2010
your treatment is not absolutely wrong. But liability is only to deduct TDS on that amount which you paid in advance. Now when you will credit bill there will be no liability of TDS. treatment is OK. If you don't book full bill also no income tax section is against it. So legally you are not on any fault and no interest or penalty can be imposed on you.
CAclubindia
