CA Netra (Practice) (117 Points)
15 July 2010Hello Friends,
We know that TDS is deductable at Credit or Payment which ever is earlier. With regard to credit, Is there any significance with the actual bill date ? Or else, date of credit in Books of Accounts itself is enough to determine the deduction date ?
Please let me know..
Amir
(Learner)
(4016 Points)
Replied 15 July 2010
Hi Netra,
The section itself says the date of credit and has not left any scope for the date of invoice.
Invoice date also gets ruled out in view of the fact that TDS has to be deducted even in case of payments made without invoice.
Booking date is relevant but if you say that one can play with that date as per his convenience and will be in a position to defer the payment if not avoid it or will use this thing as a curtain to cover the cases where he forgot to deduct TDS within the same FY then my answer would be YES he will be in a position to do that but then I believe that's where the Auditor's role comes in the picture.
An auditor is supposed to question the unreasonable delay in booking of expenses.
CA Netra
(Practice)
(117 Points)
Replied 17 July 2010
Thank u sir..
But how far is it practible to disallow the expenditure, on which TDS is not remitted before 31st March of the relevant FY & moreover if they are accounted in the month of March to avail extended time limits for making TDS remittances till Due date of filing ROI.
CAclubindia
