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Lible for deduct TDS

mahendra sahoo (Gst Practicion) (700 Points)

16 April 2018

Dear
I have booked for audit fees of provisional expenses at the end of fy 2017-18
Shall i deduct TDS or not?

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5 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 16 April 2018

NO NEED OF TAX DEDUCTED AT THE TIME OF PROVISION

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CA Shreya Jagani (Chartered Accountant) (242 Points)
Replied 16 April 2018

Sorry Naveen,

I disagree to your reply.

TDS on Audit fees is deductable u/s 194J at the time of book entry or payment which ever is earlier.

Here is the extract of the provision :

1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a) fees for professional services, or

(b) fees for technical services26, 27[or]

28[(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or]

27[(c) royalty, or

(d) any sum referred to in clause (va) of section 28,]

shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to 29[ten] per cent of such sum as income-tax on income comprised therein.

1 Like

nikita SHAH (chartered accountant) (194 Points)
Replied 16 April 2018

Yes required

mahendra sahoo (Gst Practicion) (700 Points)
Replied 19 April 2018

Shreya, according to you, suppose am making advance payment of professional fees in Feb 2018, and bill will be raise by party in May 2018, when we deduct TDS?

mahendra sahoo (Gst Practicion) (700 Points)
Replied 20 April 2018

Suppose advance payment made on March 2018, but bill have not yet received, suppose bill will be received on May and bill dated also may 2018, shall i deduct TDS on such advance payment?