28 May 2011
For almost all the Expenses relating to FY 2010-11, we passed the Bills and incorporated in the Accounts for FY 2010-11; remitted TDS and also submitted the TDS Return for QE 31st Mar 11
However, few Bills relating to FY 2010-11 could not be passed on time for want of data required to pass the Bills; hence TDS was not remitted before the due date, viz., 30th Apr 11.
If we pass the Bills and incorporate Expenditure now in FY 2011-12, the same would be categorized as Prior Period Expenditure and disallowed in assessment relating to FY 2011-12.
Our Accounts for FY 2010-11 are still open. Hence we propose to—
(a) Incorporate Outstanding Expenses JV in FY 2010-11;
(b) Remit TDS in Jun 11 with required Interest;
(c) Revise TDS Return for QE 31st Mar 11; and
(d) Include the above in Certificates to be issued for QE 31st Mar 11
Please advise whether above course of action is correct