Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

TDS on provision & subsequent billing

417 views

Save Share

Join Us Follow Us Add as Source

vaibhav

student

193 Points Posted on 19 May 2020

Hello,

We have provided provision of expense on Mar'20 with applicable TDS rate. Now if we receive party's bills post 14.5.20 wherein TDS applicable with abated rate of 25%.

Now what to do in this case, as we have given excess TDS credit / payment by 25% of TDS rate.

Thanks in advance.

Replies (2)

Quick Summary

This discussion addresses a common accounting query regarding Tax Deducted at Source (TDS) when provision and subsequent billing occur across different financial periods with varying TDS rates. The user provided provision in March 2020 with a standard TDS rate, but received the party's bill after 14th May 2020, when the applicable TDS rate had changed to an abated rate. This has resulted in an excess TDS credit. The thread explores how to manage this discrepancy and discusses the use of different TDS calculation formulas versus relying on online tax portals.

Aashok Kumar Sharma

Finance/Compliance Consultant

75658 Points Posted on 23 May 2020

Entries booked in Accounts before 14th May 2020 will have normal TDS only.

Yasaswi Gomes new

Finance

3350 Points Posted on 17 May 2023

Hi do every calaculate tds using a different formulae eg. Tds on bonus has one. Or is it safe to follow cleartax or tax adda rates? I think the latter os easy.