TDS Liability in case of Provisional expenses

This query is : Resolved

suman (Querist)
Follow

22 July 2010 I want to know if we have booked exp. on provisional basis whether or not liability to deduct tax arise .pls reply soon.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

22 July 2010 If provision is made at the end of the financial year TDS needs to be deducted but in case provision is made for preparation of quarterly or halfyearly balance sheet TDS deduction is not required.

Nirpendra Singh

Nirpendra Singh (Expert)
Follow

22 July 2010 Yes
if at the end of the year if any provision is made for exp. than TDS is required to be deducted (subject to applicability of TDS on exp. ).

Upgrade to CAclubindia Pro. Subscribe Now!