Accounting treatment in which year booked

This query is : Resolved

denis (Querist)
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08 May 2017 Dear Sir,

Advertising expenditure had incurred in F.Y 2016-17 for our Project which was completed in F.Y 2016-17. But the management was not approved Advertisement expenditure in F. Y 2016-17. Now F.Y 2017-18 that expenditure have approved and said that make the payment . I have deducted TDS for the Advertisement . I have booked F.Y 2017-18 .
is it required to book in F.Y 2016-17 & deducted the TDS the F.Y 2016-17 . We have already filled TDS return 4th Qtr F.Y 2016-17. Management also said that your book the expenses in F.Y 2017-18.

Kindly advice on the same

Thanks

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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08 May 2017 As per provisions of income tax act TDS is required to be deducted when expense is booked or payment is made whichever is earlier.

You have mentioned that expendiure is incurred in 2016-17 and project for which it was incurred was also completed so it should be booked in F.Y 2016-17 and TDS is also required to be dedutced on same in F.Y 2016-17