10 January 2009
NOW I WORKING IN AUDIT FIRM ONE OF OUR CLIENT FOLLOWED CASH BASIS OF A\C IN LAST YEAR. NOW THEY ARE FOLLOWING MERCANTILE BASIS.THEY ARE DOING COMMISSION BUSINESS.THEY WILL RECIVE THE BILL ON BULK BASIS. WHERE THE SERVICE WAS DONE ON 25-03-2008 THE BILL WAS SET ON 18-05-2008 INCLUDING CURRENT YEAR BILL AFTER DEDUCTING THE TDS .NOW HOW THE TDS WILL BE ACCOUNTED IN THE CURRENT YEAR.WHAT ABOUT THE LAST YEAR.NOW CAN I ACCOUNT FOR LAST YEAR SERVICE.THEY ARE NOT A CORPARATE CLIENT.
10 January 2009
You mean there is change in policy. In my opinion, They can account for the bills pertaining to previous year but should disclose the facts at the time of finalization by way of notes on accounts. TDS is not an issue, as upto previous year it was on payment basis but from next bill they should deduct as per rule, that is at the time of credit or at the time of payment, whichever is earlier.
CAclubindia
