Inadvertantly tds for 2012-2013 was not deducted and paid in respect of a vendor. Though TDS for other vendors have been credied in to TAN, the Return is yet to be filed(delayed for some reason).
Now how to account for this TDS this year. Can we deduct the TDS from his running bill if any in this year or we have to inform him and the deduct..
if the payee has filed his return and has accounted for the income on which tds hasve not been deducted, then you are not required to deduct tds.
if the TDS was not deducted for earlier year then the expenses in respect of which TDS had not been deducted shall be disallowed in that year. if the payee paid the tax on his income then later TDS is not required to be deducted. But otherwise TDS shall have to be deducted and the said expenses shall be allowed as deduction inthe year in which TDS is deducted.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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