Query regarding tds

TDS 757 views 3 replies

Jagmohan Mohata

CA CS

143 Points Posted on 13 December 2011

Can we claim TDS on Income deducted by any Co earlier. and After one quarter that Income is reversed & net amount( less TDS paid Back)

Case :-
•If We have invoiced a Pvt Ltd Co for domestic sales from April 2011 to June 2011 for around Rs. 1103K (inclusive of Service Tax)
•the Co. has paid us net amount of around Rs. 941K/- after deducting TDS of Rs. 104K/-
•In June end we have reversed entire Revenue charged to pvt ltd Co.

Now we have to refund the amount received to Pvt Co..

Please reply if we can avail credit of the TDS deducted by Pvt Ltd Co. while computing tax for FY 2011-12 or the same should be considered as expenses in our books & would be disallowed?

Replies (3)

amol

Finance Officer

21 Points Posted on 13 December 2011

What is the due date for filling tds return for tds on salary and tds on contract? what is the last date for issue of tds certificate for both salary and tds on contract?

vishnupriya

CA Final

1418 Points Posted on 13 December 2011

@ Jagmohan Mohata

Yes! you can avail credit of TDS.

The TDS on Expense is to be credited immediately before next month 7th, irrespective of short fall or any future reversal. So it is clear here. If there is any future reversal transactions the IT department will refund the amount to deductee, only after ensuring the amount received is properly refunded to deductor.

Only thing you have to do is, clearly show the revenue and expense (refunded income) in Income Tax return.