28 April 2012
I DID THE PROVISION AS UNDER DEBIT TO LABOUR CHARGES RS.37000/- CREDIT TO OUTSTANDING LIABILITY IN 11-12 NOW IT NEED TO DO THE PROVISION OF TDS ON PROVISION.
BILL WILL BE ISSUE BY CONTRACTOR IN NEXT YEAR 12-13
28 April 2012
Yes, TDS is required to be deducted on all Provision for Expenses (i.e. Expenses on which TDS is required to be deducted) else the Expenditure would get disallowed u/s 40a(ia). Also to claim the Expenditure in the F. Y. 2011-12, you will have to pass the TDS Deduction Entry in the F. Y. 2011-12 and pay the TDS before the due date of filing the Return of Income for the F. Y. 2011-12. Incase you pass the Entry for Deduction of TDS on Provision for Expenditure in the F. Y. 2012-13 then even though you pay the TDS before the due date of filing the Return of Income then the expenditure would get disallowed in the F. Y. 2011-12 and will be allowed only in the F. Y. 2012-13.
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