nitin suvarna (C.A FINAL) (828 Points)
05 April 2012hi friends,
in case of audit or prof fees ,a provision is made at the end of the year.So my query is that when payments are made it is not against the bill but against the provision made.Thus , how the bills provided by the C.A be accounted.please reply asap............
regards,
nitin
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 05 April 2012
The total expenditure is debited to P&L account. On this TDS is made if applicable & in the B/s the TDS payable is shown to TDS account & prof fes payable is shown to the auditor's account. thus the total bill is the amount inclusive of TDS.
Now TDS provided for Mar is required to be paid on or before the due date of filing the I-T return in the A.Y. & the balance amount is paid to the auditors in the subsequent year after finalizing the accounts & submitting the audit report.
CAclubindia
