Bimal Mehta (Senior Accountant & finance managerial) (180 Points)
27 May 2010HELLO,
IF I RECEIVED A CONTRACT BILL IN THE MONTH OF FEB . TILL 31ST MARCH I DONT PAY THE SAME BILL DUE TO SOME DISPUTE WITH CONTRACTOR .
NOW MY QUERY :
ON 31ST MARCH SHALL I HAVE TO MAKE PROVISION FOR THE TDS ON THIS BILL , AS TDS PAYABLE .
LET ME KNOW .
Rachit
(Analyst)
(913 Points)
Replied 27 May 2010
If you book the contract bill and claim the same as expense, then you are required to provide and pay TDS on it
Bimal Mehta
(Senior Accountant & finance managerial)
(180 Points)
Replied 27 May 2010
| Originally posted by : Rachit | ||
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If you book the contract bill and claim the same as expense, then you are required to provide and pay TDS on it |
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DEAR RACHIT
MY QUESTION IS : IF I SHOW THIS BILL AS OUTSTANDING IN MY BALANCE SHEET ON 31ST MARCH . THEN DO I HAVE TO MAKE A PROVISION SEPERATELY AS TDS PAYABLE . EVEN THOUGH THERE IS DISPUTE ON BILL AMOUNT . AND BILL IS UNPAID TILL 31ST MARCH 2010 .
Rachit
(Analyst)
(913 Points)
Replied 27 May 2010
TDS is required to be provided at the time of credit of such sum to the account of the contractor or at the time of payment, whichever is earlier.
In your case at the time of credit, is applicable
Rachit
(Analyst)
(913 Points)
Replied 27 May 2010
TDS is required to be provided at the time of credit of such sum to the account of the contractor or at the time of payment, whichever is earlier.
In your case at the time of credit, is applicable
Shrilakshmi Raj
(CA)
(81 Points)
Replied 27 May 2010
Yes. I agree with Rachit.
The Bill is unpaid till March 2010. You show it as outstanding in the Balance Sheet. So, here credit comes first. So, TDS has to be provided.
Vikram Soni
(Student)
(103 Points)
Replied 27 May 2010
TDS is required to be provided at the time of credit of such sum to the account of the contractor or at the time of payment, whichever is earlier.
In your case at the time of credit, is applicable
NITIN JAIN
(CA FINAL STUDENT)
(42 Points)
Replied 28 May 2010
tds liability arrises when Party is Credit or Payment is made (which is earlier) so if u booked party as a outstanding bal. as on 31st march then u have to booked tds also on 31st march.
Pankaj Jain
(Student)
(32 Points)
Replied 28 May 2010
CA. Gurdeep Singh Chawla
(C A)
(7080 Points)
Replied 28 May 2010
Malke also provision of TDS payable.
CAclubindia
