Tanu (Accountant) (767 Points)
25 June 2010
Dear friends, I have a problem reg. tds. I got bill of postage & courier for the m/o Oct’2009 and Jan-March’2010 right now, so tds in last year couldn’t be deducted. Now, the problem is that whether I could show these exps. as payable in last year or not. These amounts to around Rs. 50,000/-. Please guide me. J
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 25 June 2010
If you are following the accrual basis of accounting in that case you have to pass the provisional entry at the end of the year and in that case TDS deduction will be required.
However if you are following cash basis of accounting in that case deduct TDS when you will make the actual payment.
Tanu
(Accountant)
(767 Points)
Replied 26 June 2010
We are using accrual basis, but tds has not been deducted and return has been filed, is it not possible to deduct tds while making payment in current year?
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 28 June 2010
You can deduct TDS while making the payment. But that will not be according to the provisions of TDS.
There are 2 ways 2 do it. First, deduct TDS on provisional basis and then deposite it with interest @ 1% pm and then revise the TDS return. Second, deduct TDS on payment and deposite TDS with interet (here interest will be 1.5% pm from the date of provision till it was actually deducted and then from the date of deduction to date of deposite rate will be 1%) and consider it in present F.Y.
Option 1 will be better as it will be according to the provisions.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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