tds query urgent(section 201(1)

This query is : Open

Nitin Bhatt (Querist)
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23 May 2011 Dear Experts,
we have received a notice from Income tax depp U/s 201(1) for short deduction of TDS in f.y 2008-09.
(
rs.40930+ interest 660, now we will pay this short TDS amount in this year 2011-12 what are the entries which we have to pass in the books (2011-12) since we can not change the audited balance sheet of 2008-09,
Ist entry
1) expenses DR
2) TDS on proff CR
3) Party CR
(narration Short TDS for the year 2008-09)

IInd Entry
1)Tds on proff services DR
2) interst on TDS
2)Bank A/c CR
(Being TDS Deposited)
Now my question is shall we also file a revised return for 2008-09 & fresh form 16a should be issued to party.
& if he already filled his return for the f.y 2008-09 , can he take credit of this revised form 16a .
thanks ,
Nitin Bhatt

Deepak Narayanan

Deepak Narayanan (Expert)
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23 May 2011 Hi,

First you have to decide whether the amount [short deduction ] can be recovered from the party. if recoverable you have to Dr party account instead of expense account revise your TDS return and issue fresh form 16 so that party can avail credit also.

If not recoverable you can treat the amount as expense [prior period] and revising TDS return and issuing fresh form16 is optional

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