We render manpower services to Aviation Sector during the year we raise Invoice to them and they make payment of the same but in the month of March they have made a provision of 700000 and deposited TDS of 70000 on the same. Now Do we need to book this 700000 as our Income and take credit of TDS OR we can ignore the Income and also TDS ? Our Tax Liability is Coming very high.
24 June 2013
If the TDS is reflecting in 26AS then you must take credit of the same.....but if you would consider TDS then you must also account for income corresponding to that i.e.700000/- so there would not be much impact on reduction of existing high tax liability.
CAclubindia
