Tds applicability on interest due on loan but not paid

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 IS this TDS is applicable on interest due on loan but not paid the same from last 3 month?

Ganeshbabu K

Ganeshbabu K (Expert)
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07 June 2013 IF YOU HAVE PASSED INTEREST DUE ENTRY IN BOOKS YOU NEED TO PAY TDS

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 if due entry is not pass for the same then what's the implication?
company is following accrual system of accounting.

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Ganeshbabu K

Ganeshbabu K (Expert)
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09 June 2013 To whom you need to pay interest..let me know

and if you are following accrual system you need to pass due entries as it is expense related to this financial year whether you paid or not,

and you should give credit to party for interest amount by debiting interest to p&l

so even you paid or not if interest is due for month you need to pass entry in books as per accruel basis and as per that you need to pay tds on it..

if you have not paid tds on expence claimed in p & l account it will be disallowed as an expence under secion 40(a)(ia)