15 April 2009
Should we make provision for cost audit fee in 2008-09 accounts, deduct TDS and issue TDS certificate when neither the audit will be conducted before the finalization of balance sheet nor any bills will be received from the cost auditors.
If we create povision and issue TDS certificate, will not it create problems for the cost auditor who might not have taken the income for 08-09 in his IT return for which we will issue him a TDS.
16 April 2009
See as per the company law & accounting standards the liability for cost audit fee was known as on the balance sheet date then you must make provision for the same & need to deduct the TDS on it.
As a professional your cost auditor needs to maintained his books of accounts on cash basis. He will take the benefit of TDS in this year & booked the income in next year. If will not arise any problem for your cost auditor.
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