Tds claim

399 views 1 replies

Hello Friends.

One of my client has the following invoicing system:

1. Give the estimate of total contract

2. As the contract progresses make the invoice only for the work completed.

Now the person who has engaged my client, claims the estimate amount as expense in his or her books & accordingly books TDS. This TDS amount reflects in my clients 26AS. Can this TDS amount be claimed in return for several years- years in which we book the invoice amounts.

Replies (1)

In my view.

TDS can be claimed only in the year of deduction. TDS of one year cannot be carried forward to another year. Hence entire TDS can be claimed, and cash system of accounting can be followed to avoid any disputes raised by the department in future.

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