Suresh Chandra (Manager - Accounts) (206 Points)
17 June 2013Dear Sir,
Shall we deduct TDS on Provision/Accrual Entry?
Ex: we need to pay professional charges for March 2013. on 31st March 2013 we have not received any invoice for that and we made some provisional entry of the amount Rs. 35000/-. on 15th April 2013 we have received invoice for the work done for the month of March 2013 for Rs. 35000/-.
Shall we deduct TDS for the provision entry made on 31st March 2013? please explain this.
CA Ramsai N
(Fresher)
(594 Points)
Replied 17 June 2013
Yes... you have to deduct the TDS under Sec 194J for F.Y 2012-13.
The due date for paying TDS on such provision is April 30. so you have to make the provision on 31.03.2013 and deduct the TDS and remit accordingly.
If you provide provision and not deduct the TDS before filling the return under Sec 139(1), such exp will be disallowed
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