03 August 2010
A professional firm is liable to tax u/s 44AB if the gross receipts excedd 10lakh RS. M/S ABC is a partnership firm following cash accounting system. The total turnover is 9550000/-. It considers credit on receipt basis i.e it takes the credit of TDS only of those amount which it has received during the year irrespective of the year of income.Whether the accounting system and method followed by the firm is correct????? And whether it has to offer any TDS deducted by the clients in the current year in the sales A/C??? Whether TDS deducted by client of the party should be considered on receipt basis???? Please provide supporting
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