During the audit of a company i saw a case where the co. deduct tax and deposit it but later on they make reversal entry of same TDS amount and adjust the same with other equivalent amount. Is it possible?
Please Confirm.
Thanx in Advance
Naveen Chand Khulve (CA) (1521 Points)
12 May 2009During the audit of a company i saw a case where the co. deduct tax and deposit it but later on they make reversal entry of same TDS amount and adjust the same with other equivalent amount. Is it possible?
Please Confirm.
Thanx in Advance
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 13 May 2009
Dear Naveen,
There are no restriction of such reversal entry but deductor has to ensure that the adjustment is done with entry having TDS deduction:
1) under same section.
2) For same period
3) For same category of deductee (Company deductee/non company deductee)
rgds
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
CAclubindia
