Tds on audit fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2011 Hi,

I had made a provision of Rs.25000/- (without deducting TDS towards Audit Fee for F Y 10-11. And now I have received 2 bills dtd 30.09.11 from the CA as below:
1) Audit fee (F Y 10-11) - Rs.25000
2) Tax Audit Report + I.T filing (F Y 10-11) - Rs.30000

So tds has to be dedcuted on which bill?

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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14 October 2011 The provision you would have made as an expense and not through vendor (audit firm) crediting hence you need to do TDS in both the bills in this FY
Had you credited vendor account in 10-11 you would have also deducted TDS at that time but as it was only expense provision tentamounting general and not specific to vendor provision. TDS as such is to be done now as the current years' expense, moreover general provision taken was much lesser than the actual received now.