Provision for TDS

This query is : Resolved

Dipesh J. Baghmar (Querist)
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26 July 2010 If private limited company pays commission expenses in Sept '09 and Feb 2010 but Commission and TDS provision is made on 31/03/2010 and TDS is deposited in bank on 07/05/2010 then whether commission can be taken as deduction in profit and loss account and why? Commission is Rs. 100000 in both the month. pls advice

srinath

srinath (Expert)
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26 July 2010 TDS should be deducted wen payment or provision whichever is earlier.... and the deducted TDS should be paid before the year end except in the month of march wen payment can be made before filing the return... If not den it would be allowed only in the year of payment

in the given case tds should ve been paid before 31.03.2010 since payment was made well before march

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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26 July 2010 AGREED, TDS SHOULD BE DEDUCTED ON DATE OF PAYMENT OR CREDIT WHICHEVER IS EARLIER.
IN YOUR CASE, PAYMENT IS MADE IN SEPT 09 AND FEB 10, YOU HAVE TO MAKE PROVISION FOR TDS ON THAT MONTH IN WHICH YOU HAVE PAID.
I.E THIS IS DEFAULT, NOW PROVISION MADE IN MARCH AND DEPOSIT TDS WITH INTEREST
IN CASE OF SEPT 09 PAYMENT , INTEREST WILL BE CHARGED FROM OCT 09
IN CASE OF FEB 10 PAYMENT, INTERST WILL BE CHARGED FROM MARCH 10.
IF YOU HAVE FILE E-TDS RETURN. THEN IT IS ALSO TO BE REVISED .

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