TDS o provisional entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 Sir,
We have made provision for ocean freight and Agency charges payable to shipping agency on 31-03-2010(Bill are dated April and May 2010). Are we liable to deduct tds on that.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 September 2010 Book the amount and Deduct TDS in financial yaer 10-11.
If your account has been finalsed and you have already booked the expenses the you have to deduct TDS on same in order to claim the expenditure. Further ask the party to give the bill dated in march 2010.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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06 September 2010 If the expenses is related to last FY then it should be booked during last year only.

Further, since you have made a provision for such expense in the last year so TDS must be deducted in the last year only.

Even if the bill is current dated for services rendered during last year, expense & TDS should be accounted during last year only.

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