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Income tax

CA.VATSAL SHAH (SERVICE) (202 Points)

25 September 2008

Dear All,

If we write of Party account due to non receipt of tds certificateds from party, whether that dr balance writee off will be disallowed or allowed?

Thanks.

CA.Vatsal Shah

M.No-9825900045

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3 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 25 September 2008

Should be allowed u/s 37

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Jitender (Chartered Accountant) (8724 Points)
Replied 25 September 2008

yes ,it is allowed.

Kamal Jain (Chartered Accountants) (29 Points)
Replied 26 September 2008

Dear Sir,

In my opinion, no question arises on write off the party balance due to non receipt of TDS Certifiacte. for example - if we dr, party by Rs. 10000/- and in turn he makes payment of Rs. 9000/- and deduct TDS of Rs. 1000/- then in our books the entry should be -

Bank/Cash A/c Dr. 9000/-

TDS Receivable A/c Dr. 1000/-

To Party A/c 10000/-

Now the party's balance is NIL and TDS receivable A/c is the standing a/c which can be claimed as expense if certificate is not recd.

Regards,

K N Jain

Originally posted by :VATSAL SHAH

Dear All,

If we write of Party account due to non receipt of tds certificateds from party, whether that dr balance writee off will be disallowed or allowed?

Thanks.
CA.Vatsal Shah
M.No-9825900045