Dear Experts,
One of my client (e.g. XYZ Pvt. Ltd.) maintains its account on accrual/mercatile basis and recognised an income in current year (e.g. FY 2014-15) after completion of service to its client (ABC Enterprises). However, ABC Enterprises maintains its accounts on cash/receipt basis and it has booked the TDS of above payment to XYZ Pvt. Ltd. in next year (e.g. FY 2015-16).
Now, while filing ITR XYZ Pvt. Ltd. is offering above income to tax on accrual basis but in the TDS-Schedule of ITR form the TDS of next year cannot be claimed unlike unclaimed TDS of earlier years.
But as per Sub rule 3 of Rule 37BA of Income Tax Rules credit of TDS will be allowed only in the year in which income corresponding to that TDS is assessable.
Now, my question is how can we deal with this issue and how can we claim the TDS.
CAclubindia
