Dear Members,
I have a typical problem in our company. We are a startup firm and like any other startup we do have cash flow issues.
Due to this all the 3 directors, who were supposed to take Rs. 1.40 lacs salary per month decided to take only Rs. 40,000/- per month. Since there was not even enough cash for this, we accrued the salary as payable and paid TDS accordingly as per the rule.
But we didnot accrue the balance Rs. 1.0 Lac salary, as we were not in a position to pay TDS for that salary. So what we did was we had a board meeting and in that meeting it was discussed and resolved that this balance Rs. 1.0 Lac salary shall be accrued & TDS paid as & when the company financial condition improves.
So my questions are,
1) Can we accrue the salary as & when we want and pay the TDS irrespective of the financial/assessment year?
2) If it can be done, then what rates of TDS has to be deducted and paid
3) If it cannot be accrued then what is the alternate solution.
Please let me know as this is becoming a very critical for our accounting actions.
If you wish you can respond back to me on murali at gppc dot in
regards,
Murali.
CAclubindia
