19 August 2016
Hi experts our company paid TDS now this amount relating to previous years short deduction. At that time no provision was made, now it is debited to P&L A/c . is the treatment followed by company is correct if not please advise.
22 August 2016
No the treatment is not correct as the books are maintained on accrual basis and not on cash basis. Thus if the expenses / tax was due on the previous year, provision should have been made for the same.
CAclubindia
