tds on annual provision

This query is : Resolved

alpesh (Querist)
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22 July 2009 sir ,

we are ltd company , we have made provision for audit fees on 31 march 2009 as audit fees Dr. unpaid audit fees Cr.

is their any liability for tds on that provision because the payment to auditors will be made on next year

alpesh shah
saptrangi craft ltd
ahmedabad

CA Devesh Popat

CA Devesh Popat (Expert)
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22 July 2009 The liability for TDS deduction arises on Credit or payment whichever is earlier. As u have made provision for TDS on 31/03 TDS should have deduted on same date, as seen u havent deducted that amount if ur balance sheet is still not final u can make provision on 31/03/ for TDS payable & make payment before date of return filing.