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TDS

hardik (ca final) (38 Points)

07 September 2009

My client has received the bill for F.Y 08-09 on 4th August 09 for which T.D.S is to be deducted @ 10.3% but the quarterly return has already been submitted for last quarter of 08-09.If we make the provision for the expense is the client liable to deduct T.D.S for provisions made

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2 Replies

llllVICTORllll (Internal Auditor) (511 Points)
Replied 07 September 2009

as far as i think, TDS is to be deducted when the payment is done, and not on the reciept of Bill, so, if the payment is done in the year 09-10, then TDS is to be deducted during that period only. so i think there is no issue

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Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 07 September 2009

Dear Hardik,

I understand, there shall not be any TDS liability on provisions for expenses and my understading is backed by below issues

As on 31st March or say 7th April or 30th May (which ever is applicable);

1) one may not have exact amount/quantum of expenses to be charged in the ending year.

2) one may not have details of the deductee and in case tax is deducted on whose account it is to be credited while filing 26Q.

On the other hand, if provision made is such that and such manner which can help to identify both the above "1 and 2" as on 31st March or at the time of payment of Tax to CG. It is advisable to deduct and pay accordingly.

Thanks and Regards

Juzer Sadikot