Manoj kashera (Articleship) (64 Points)
29 September 2011TDS (ASSETS) for (AY 2008-09) for 55000 written in balance sheet for the year ended 2010-11 of proprietorship concern.
I think, when TDS deducted than it is our current assets. and when the tax computaion is done tax payable will be
netoff TDS.
suppose Tax Payable= 100000/-
Less:- TDS = 55000/-
Net Tax Payable= 45000/- that means TDS was claimed in AY 2008-09,
then why it is written in Balance of F.Y. 2010-11.?
Plz. sort out my confusion, i am very thank ful for all of U.
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 29 September 2011
Let me know one thing the example u have shown tax payable 100000 less tds 55000 pertains to which financial year.?
ashish gupta
( student)
(1922 Points)
Replied 29 September 2011
yes TDS should have been adjusted against the tax liability.
arjun s
(CA Final)
(299 Points)
Replied 29 September 2011
Mr. Manoj plz their may be possible mistake in journal entries plz check any provision for income tax entry and its leger to see how is is it set off either by whole payment or wrong set off
if in case the tax is paid fully then it is that tds is not claimed and it cannot be claimed now so hence u can write off that TDS amount
U check the journal entry passed against income tax provision in the books of FY 2007-08. u will come to know the idea if u dont have that ledgers then easily write it off
Manoj kashera
(Articleship)
(64 Points)
Replied 01 October 2011
not satisfied, plz give the details that i can easily understand
arjun s
(CA Final)
(299 Points)
Replied 01 October 2011
just write off that tds amount u cannot utilise it
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 01 October 2011
Actually during finalisation of accounts an entry is passed:-
Pl a/c Dr
To Provision For Taxation-the amount will be your tax liability
then u pass an entry:-
PFT a/c Dr
To TDS
To Advance tax (if any)
To bank(bal fig)
As u are saying there was tax liability of Rs. 100000/- then i guess the above two entries were not passed in your book mistakenly that is why TDS is still shown in your BS.TDS (asset) is only shown in BS when there is no tax liability and u r elegible to get refund of TDS paid.
arjun s
(CA Final)
(299 Points)
Replied 07 October 2011
Accorfing to my knowledge if he has to claim tds then he has to file revised return for AY 2008-09
CAclubindia
