Tds on auditor remunaration

This query is : Open

Amit Nandy (Querist)
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13 April 2016 Please let me know should we deduct TDS from auditor remuneration on the time of booking or on time of payment because normally we deduct tds on the time of booking or payment which ever is earlier but in the case of auditor remuneration the liabilities till not occur on 31st March of the FY. The performance of audit(statutory & tax audit) will be completed for company after 31st March so in that case should we deduct the TDS on the time of liability payment and payment the TDS to the department accordingly or we have booked the TDS on the time of liability booking and payment made within 30th April of the following FY.

Amit Nandy

Parag

Parag (Expert)
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13 April 2016 Provision for audit fees is required to be made as on 31st March for that financial year and TDS is required to be deducted on it u/s 194J of Income tax act.