21 May 2010
IT IS MANDATORY TO DEDUCT TDS ON PORVISION FOR EXPENSES WHICH IS DONE AT THE END OF THE YEAR BUT IN THIS CASE WE DONT KNOW NAME OF THE DEDCTEE AND EXACT AMOUNT OF GROSS BILLING IT IS BOOKED ON THE BASIS OF PROVISION.
ALSO GUIDE HOW TACLE THIS CASE WITH LEGAL PROVISIONS
PLEASE CLEAR IT AT THE EARLIEST WITH SUPPORING OF SECTION REFERENCE.
21 May 2010
As we are aware that provisional entry is made as on 31.03 of any financial year so TDS is also deducted on 31.03. That is why last date prescribed for depositing TDS deducted on 31.03 is 31.05 i.e. 2 months. So in this 2mths we can make assure that who is the payee.
21 May 2010
The answer is yes, you have deduct TDS on the provisions even you do not know the name of the payee as all charging section of chapter XVII except section 196C, provide that in case of amount is credited to a suspense account, TDS provision apply. Please go through the text of various sections for better understanding.
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