Tds on provision for expenses

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Avinash

Avinash (Querist)
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21 September 2011 Details are required on this subject...

Rahul Mehta

Rahul Mehta (Expert)
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21 September 2011 entries for tds on provision for expenses:

Expense A/c Dr.
To Provision for Expense
To TDS payable A/c

At the time of payment

TDS payable Dr.
To Bank A/c

Prov. for expenses Dr.
To Bank/Creditors

Please reply if u r still not clear in this context.

Avinash

Avinash (Querist)
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21 September 2011 Hi Rahul, I am looking for the TDS rules on this....

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 September 2011 As per the various Sections governing TDS, TDS is required to be deducted at the time of payment or credit in the books, whichever is earlier.

Accordingly, TDS is required to be deducted while making provision for expenses.