Dear members:
We have one long unsolved debate in our company.
The query is , deduction of TDS to the nearest RS.10.
For eg1) if TDS comes to Rs.188 , u should deduct Rs.190
2) If TDS comes to RS.102 , we should deduct 100.
This is the system have been following in our company for last one year.
But I am not pretty well satisfied with the above system, because
First eg result into “excess deduction of tax” , I think it doest let you into any further issues, like fine, interest or violation of losses
But the second eg result to “short deduction of tax”. Iam sure where a company like us having a huge turnover, this difference amount turn to lakhs at the end of the month, which is a material amount.
So provisions like interest, fine will activate function .
The following are practical problem arises as result of second eg:
1)To which account , we should charge the difference amount.
2) In filling up the bank challans , in which column we should mention the difference amount.
3) At the end of the period it let the company having paid excess tax than collected or payment of the tax lesser than the collected amount.
4) whether those excess or shortage are the income or expenses , whether those are allowable expenses or incomes as per the income tax.
5) TDS quarterly statements are not supporting for the above.
So I request all the members , keeping in mind all the above points , answer my query to enable me to place it before our management to support my opinion
CAclubindia
