Sir/Madam,
1. Deductor has to deduct TDS u/s 194 C on advance or accural basis whichever is earlier.
2. Due to which he has dedcuted the same on advance basis.
3. however dedcutee has not yet started any work till year end and thus there is no INCOME in his books.
4. How should Dedcutee should show TDS in his books as same is showing in 26AS.
5. if he claims only TDS without showing Income then whether any provision is violated or he should claim TDS this year and file return without Income.
TDS Receivable Dr
To Party
The Credit of party would be set off against the income of assessee and it will not contradict any provisions of IT act
agreee with above
Though there is no income but busiess operation is started. so file return and clim TDS refund.
journal entry is
cash/bank a/c. dr
tds a/c. dr
to party a/c.
there is not any violation of any act,,you can file your IT return & can very well claim your refund.
There is no violation of act,file your return and claim TDS refund.
CAclubindia
