Is there is necessity to make provision of TDS while making of expense provision.
example- if provision for professional fees, is there is need of TDS provision & TDS to be paid in Financial year.
Kindly reply.
Santosh V. Thakur (Sr. Accountant) (187 Points)
17 September 2012Is there is necessity to make provision of TDS while making of expense provision.
example- if provision for professional fees, is there is need of TDS provision & TDS to be paid in Financial year.
Kindly reply.
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 17 September 2012
THERE IS NO RULE TO MAKE PROVISION FOR T.D.S
EVEN IF U MADE NOT ALLOWED AS DEDUCTION IN BOOKS
T.D.S HAS TO BE PAID AT THE TIME OF CREDIT OF SUSPENSE A/C OR PAYEE A/C
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 23 September 2012
It solely depends upon the mentod of accounting followed by the assessee. If you are following mercantile system of accounting then it is mandatory to deduct tax at source at the time of credit because as per relevant sections relating to TDS it says TDS shud be made at the time of credit or paymetn whichever is earlier. As you are making the provision in which case credit is earlier so TDS shud be made. If you do make TDS then you would be liable for penalty.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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