Please clarify whether TDS is applicable on year end provision of of audit fees or other professional fees?
16 Replies
SIDDHARTH KOTHARI
(N.A)
(280 Points)
Replied 09 March 2012
Application of Sec 194J comes to play role in the following situaltion.
1) On Profession Services
2) On Royalty
3)
Only if the total on the any of the above is billed more than 30000INR.
TDS under section 194J is deducted
Credit of the said amount
or
Payment of the same
Which ever is earlier.....
So,If you make the provision of the audit fees which is more than 30000INR then your are required to make the TDS on the date of making the Provision of the same.
Rajesh
(student)
(193 Points)
Replied 09 March 2012
Dear Bhavesh,
Even though Provision you have to deduct TDS and remit
Mar'12 Provision - TDS has to be remitted April'12
And Quarterely return for 4th quarter to be filed on or before May'12
santhosh kumar
(article student)
(84 Points)
Replied 09 March 2012
TDS is applicable when ever an amount is paid or liability is created to specific person.
In case of provisions payment is neither accrued nor paid hence TDS is not applicable on provision for audit fees.
Correct me if i am wrong.
santhosh kumar
(article student)
(84 Points)
Replied 09 March 2012
TDS is applicable when ever an amount is paid or liability is created to specific person.
In case of provisions payment is neither accrued nor paid hence TDS is not applicable on provision for audit fees.
Correct me if i am wrong.
Rajesh
(student)
(193 Points)
Replied 10 March 2012
Dear Santhosh,
Please Note,
TDS Not only Applicable for liability or specified person on bill. Even TDS Applicable for Provision too.
CA. Deepak Narula
(B.Com., ACA, DISA)
(541 Points)
Replied 10 March 2012
If TDS is applicable on provision, then in whose name TDS return will be filed because 4th quarter TDS return has to be filed by 15th May and the organisation may not have appointed the auditor by then. Because, unlike companies, in small businesses the appointment of auditors is sole discretion of businessmen. So, in my opinion TDS should not be deducted on provision amount. Please clarify with reasons.
Rajesh
(student)
(193 Points)
Replied 10 March 2012
Dear Deepak Sir,
I agree with you.But, they can't levy audit fees in the particular Assessment year during the audit.It has to be levy in the next FY.
By doing this , Profit of the company will be high.So, They have to pay more IT on that.
Also note,
as per accrual concept, organization should provide all the possible expenses / loses .
Kindl clarify me, if iam wrong
CA.Sourabh jain
(chartered accountant)
(71 Points)
Replied 10 March 2012
TDS is deductible only when on payment or credit to a person....by way of making a provision we are only booking an expenditure as per accrual concept and not giving credit to any person nor making payment. Hence TDS should not be deductible.
chandra sekar
(Manager-Accounts)
(387 Points)
Replied 12 March 2012
Also pls ensure that u are calculating the TDS on the amount of the bill excluding Service Tax, under sec 194 J. If i am wrong, pls correct it.
Chetan
(Senior Auditor)
(172 Points)
Replied 12 March 2012
Dear Chandra Sekar,
TDS is always deducted on gross bill amount,i.e. including service tax.
Sumeet
(CA Final)
(110 Points)
Replied 12 March 2012
TDS is deductible on provision of expense also. Just because the auditor is not appointed cannot be the reason for non-deduction of TDS if the Audit fees is more than Rs. 30,000. If the Auditor is not appointed yet then the company has to deduct TDS and pay the interest accordingly otherwise the expense of Audit Fees would be disallowed u/s 40(a) of the Income Tax Act on account of non-deduction of TDS.
Recent Topics
- Share office desk in bkc, near family court
- 80D claim for payment paid by parent
- TDS on purchase of Flat under subvention scheme be
- Nznxnc call me at the end of the day of the
- Nsje snswk fjw ed le ene djff ne enje ejdd rejje
- Hxjcif the day I have been in touch with me and
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
Related Threads
CAclubindia
