31 October 2011
Expense is booked in the F. Y. 2010-11 and since no TDS was deducted, the same was disallowed. Today i.e. in the F. Y. 2011-12 if I am deducting TDS on the Expense, then at the time of making the payment of TDS which year should I select: F. Y. 2010-11 or F. Y. 2011-12?
- if your answer is F. Y. 2010-11 then what will happen if I have selected the F. Y. 2011-12 at the time of payment?
- if your answer is F. Y. 2011-12 then what will happen if I have selected the F. Y. 2010-11 at the time of payment?
01 November 2011
If you could possible, it is better to remit the TDS and interest for the FY 2010-11 and revise the TDS returns. Because the party will get the credit for TDS in the year in which they have offered income for tax purposes.
If the party also not claimed TDS in their Income Tax return in the FY 2010-11, They can revise their IT Return and claim the TDS.
02 November 2011
The query seems like TDS was not deducted on expense in FY 2010-11 but Credited to party account and payment was not made till now. Hence the question arises whether TDS can be deducted today in this FY (2011-12) on an expense already booked in the Last year before releasing the payment to the vendor now. Please clarify whether it's true or not. However, as already advised by Mr. Deepak, reference of attraction under Sections 201(1), 201(1A) and Section 271C cannot be ruled out in case of default or failure to deduct the TDS.
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