22 October 2009
1) Go through the Expense Ledger Accounts and determine the transactions liable for TDS. Eg: 94 C - Contractual Payments like labour charges, Advertisement or any other pymts, made under a specific contract.pymt above 20,000 at a time or more than 50,000 yearly. 94 J - Professional charges paid above 20,000 p.a. 94 H - Commission paid to Agents above Rs. 2,500.
2) Once the Expenses ledgers are shortlisted, go through the entries in the account and find out Parties who satisfy the above conditions in terms of amount paid to them .
3) Once U have the party names go to their personal ledgers and see if TDS has been deducted at the right rate.
4) Also check, that TDS deducted has been paid into the govt, treasury before 7 of the next month.
5) Also scrutinise Bank and Cash book and find transactions where in payment exceeds 20,000/- Find if they have been made to persons covered under any of the TDS sections and verify if TDS has been deducted.
6) See if TDS returns have been filed in time.
7) Check year end provisions and TDS applicability on the same like Auditors fees, Rent etc.
8) Also check that TDS on Provisions have been deposited before 31st May, or else the expense will get disallowed.
For more details go through the ICAI's Guidance note on TDS.
09 November 2009
Can I request Anisha or Jinesh on what are the items on which Provision for TDS at the closing of FY has to be made on.If SAP is the module Can U tell me what are the interfacing accounts from where I can draw a conclusion as to what are the like GL accounts that I need to check To arrive at the provisions.
CAclubindia
