Can one can claim TDS partly in same year and partly in next

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Davinder Sodhi

Lawyer

46 Points Posted on 10 July 2010

Can assessee claim partly the TDS in the same year and partly in next year???

because the assessee has raised the commission bill for Rs 18 lacs in FY 2009-2010 for which the payment has been received only 8 lacs till 31 March. As the accounting on receipt basis we have deposited the amount of service tax on Rs 8 Lacs and also the expenditures were made against 8 lacs in the same year.

Now the company to whom bill was raised had deducted TDS on Rs. 18 lacs. Now should the assessee show his income according to the TDS certificate if he shows this, there is no expenditure against the balance 10 lacs.

The balance 10 lacs is recd in the current year that is FY 2010-2011. So can we claim TDS only on 8 lacs in FY 2009-10 ITR and balance TDS in FY 2010-2011???????

FORM ITR 4 includes the column : 'Amount claimed for this year' under the heading " TDS detail"

Replies (3)

venkateswarlu.

CA Final

79 Points Posted on 10 July 2010

as per service tax provisions service tax is imposed on receipt basis. therefore service tax is calculated on the amount received. if u r following other than mercantile system i.e cash basis u can book the expenditure to the extent what the amount is received and the claim the tds to the extent of part paid and the balance amount was claimed in the next year.

Darshan Bhutwala

Proprietor

50 Points Posted on 10 July 2010

Hi,

you can claim the entire TDS in this year and show the same as income too... For eg. in your given case tds was deducted on 18 lacs say 1.8 lacs and the firm received rs. 8 lacs against the bill. Hence 8 lacs + 1.8 lacs should be shown as receipt and taxed accordingly and tds of 1.8 lacs be claimed. Next year the assessee would receive 18 lacs -8 lacs - 1.8 lacs ie. 8.20 lacs which should be shown as income for next year with no corresponding tds claim. However, you cannot claim same tds certificate in 2 years in parts.

Amir

Learner

4898 Points Posted on 10 July 2010

Dear Sir,

With due respect ur attention is invited to the following -

Rule 37BA(3) -
(i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.
(ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.