Treatement of Balance in TDS A/c

This query is : Resolved

Ramesh Chandra Pusola (Querist)
Follow

27 March 2010 Dear experts
Please what will be treatment for TDS amt appearing in the balance sheet for the Fin. year 2006-07. The Assessment is complited and there will not be any amt of refund pending from income tax as per the their records. What effect should be given in books of account and their treatment. Same way balance left in FBT account also.
Please guide me on this matter.
With regards
Ramesh Chandra Pusola

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

27 March 2010 TDS Receivable can be adjusted with Provision for Income tax/ Income Tax A/c.

Same treatment of FBT paid.

Zeeshan

Zeeshan (Expert)
Follow

27 March 2010 The balance should be written off below the line. i.e. Expenses should be recoreded as Tax related to earlier years.

Entry will be:
Direct Tax related to Earlier Year
To TDS/FBT Advance tax paid.

As the amount is not recoverable you have to charge it to P&L Account.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

27 March 2010 agree with expert

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

27 March 2010 agreed

Zeeshan

Zeeshan (Expert)
Follow

29 March 2010 hey Experts....Agreed with whome....??? you should mention otherwise the seeker will be confused...!!!

To whome so ever it may concern....!!!
i am agree with my opinion