WE HAVE TO DEDUCT TDS ON PAYMENT OF BUILDING RENT DURING F/Y 2010-11 BUT WE FORGET THE SAME. CAN WE MAKE PROVISION FOR THE SAME AS OUR BALANCE SHEET IS GOVING TO FINAL NOW. BUILDING RENT WERE 100000 P.M. FOR 7 MONTHS
09 December 2011
As per the law regarding tax at source, a payer is liable to deduct the tax , moment of either actual payment or crediting the sum to payee.
When you make provision, it is actually neither credit to any one’s account nor it is actual payment. Therefore, law of tax at source is not applicable.
The only point one must check is whether the provisioning is not bypassing the accounting norm must follow.
CAclubindia
