How to treat tds deducted in march for payment made in june

Page no : 2

work is worship (Service) (2728 Points)
Replied 12 June 2012

Since you had the payment pending in March 2012, that amount would be reflecting in your debtors outstanding as on 31 st March 2012. so the TDS whcih has been deducted by Cleint in March 2012, has to be accounted by you in March itself and you can claim the same.

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*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 12 June 2012

@ Ram ...

Following Example resolve your query.

Suppose you provide some Service in Mar 12 to Mr. X for Rs. 100. But he paid the same to you in the month of Apr 12. But the accounting of Mr. X is on Accrual Basis. Hence he made following Entry in his Books

Exp A/c Dr. 100

To Vendor A/c 100

And suppose this payment is liable for TDS, he also made following Entry

Vendor A/c Dr 10

To TDS Payable 10.

And paid the same.

As your accounting is on Cash Basis so your Income in the month of Mar is Rs. 10 and entry for the same is

TDS Receivable Dr. 10

To Income A/c 10

Entry In the month of when you received payment.

Bank A/c Dr. 90

To Income A/c 90.

Hence as per Above You should Booked Income by upto the amount of TDS and Claim the same in the FY 11-12 and booked remaining income in the year of receiving the same.

MAHESH GARG (AUDIT EXECUTIVE) (334 Points)
Replied 14 June 2012

With all due Respect to JIGAR,

I THINK U TOOK MY WORD PERSONALLY. THE REPLY GIVEN BY YOU IS WAT WE CALL AS "BETUKA JAWAAB".

NOBODY IS QUESTIONING THE FACT THAT CREDIT CAN BE TAKEN ONLY AFTER DEDUCTION IS MADE BY THE DEDUCTOR BUT IT DOES NOT MEAN CREDIT IS TO BE TAKEN AS SOON AS THE DEDUCTION IS MADE BY THE DEDUCTOR.

PLEASE DON'T BE PERSONAL AND ALLOW OTHERS TO LAUGH ON YOU.

ALSO I M SORRY IF MY WORDS HURTED YOU.

REGARDS

CA Jigar Joshi (BUSINESS) (67 Points)
Replied 19 June 2012

NO...SIR I AM NOT SO HURTED...U SHOULD NOT BE SORRY!!! I JUST MEAN TO SAY THAT IT DEPARTMENT WILL ALLOW CREDIT AS PER FORM 26AS ONLY....AND IT IS THE EXTRACTION OF TDS RETURN FILED BY DEDUCTOR ONLY... U CAN ALSO TAKE CREDIT IN THE SUBSEQUENT YEAR....IF BY MISTAKE YOU HAVE NOT TAKEN THE SAME....BUT IT DEPARTMENT ME AANA JANA RAHEGA....