Tds

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vineet sharma (Querist)
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10 April 2009 In The case of Company,
Suppose we had create a provision of Rs 10000 for commission on 31.03.2009.
T.D.S is deducted on 02.04.2009 and payment is made on the same day.
The T.D.S amount is paid to government on 15.04.2009, then
For which Financial year the T.D.S credit will be available and
For which Financial year the commission will be allowable as expense, whether F.Y 08-09 or 09-10
What will be the treatment of the party receiving commision as income
Whether that income will be disallowed in the F.Y 08-09

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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10 April 2009 TDS available in year of credit in books. When you are booking payment thenyou need to show TDS seperatly, if you dont then it will be regarded as non deduction.

So in your case the credit will be available in next year as you have not booked it in accounts on or before 31st march

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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11 April 2009 i agree with the expert

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Om Prakash Singh

Om Prakash Singh (Expert)
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11 April 2009 Mr Vineet why u deducted TDS as on 02/04/2009 why not as on 31.03.2009.becoz if exp has been provided ason 31 march then u may deposit TDs upto 31 May for same F.y in which u have provided for Exp. U have done mistake that u have u have deducted TDs as on 02/04/2009 and deosited in F.y 2009-10.Then ur Exp will be disalloed showing reason of non deduction of TDs. U may again deposit TDS For F.Y 2008-09 and Claim for previous deposit of TDS for f.Y 2009-10.

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 April 2009 Just Pass the journal entry for TDS deduction on 31.03.09. Delete/Reverse the entry passed on 02.04.09. Your expenses will be allowed for the FY 08-09.