CASH BASIS OF ACCOUTING

This query is : Resolved

sumit bhartia (Querist)
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26 March 2009 My Company follows cash basis of accouting

but we book the whole TDS amount the certificate which we get from the party

But on the corresponding the total income is not booked because we follow cash basis

is this the right treatment

Please help

Sanjay Soni

Sanjay Soni (Expert)
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27 March 2009 The TDS should be booked with corresponding income and you can not break up the TDS in two saparte years to correspond with the Income Booking therefore the Income should be booked in the year to which it relates to get the full benefit of TDS