10 May 2008
One of our contractor billed for the month of March-08 in April-08 for the same i had done a provision entry in with expenses payable a/c on 31.03.2008 and for the same deduct TDS @ 2.06.
I have a confussion that TDS is to be deducted in March-08 or in April08 when i received Bill from Contractor.
10 May 2008
when porvison is made on 31/03/2008 for cotractor payments then you will pay the same amount before 31/05/2008 the contract payment amount is deductable in p&l a/c
10 May 2008
PLEASE REFER LATEST AMENDMENT TO TDS IN INCOME TAX ACT RELATING TO MARCH TDS. Sec 40 (a) (ia) ammendment retrospectively to allow deduction of expenses in case TDS of Mar month not paid in time but paid before due date of return. YOUR ACCOUNTING OF BILL AND TDS IN MARCH-08 IS OK. ABOVE AMENDMENT HELPS TO DEPOSIT TDS TILL FILING OF IT RETUN IN SEPT-08 R.V.RAO
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