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tds on provisions

abhas duvey (Article Trainee) (25 Points)

08 May 2008

please tell me whether tds is necessary to be deducted on provision entries.

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5 Replies

jaideep malik (artical assistant) (78 Points)
Replied 08 May 2008

hi,

this is very common problam asked by you . TDS must be deducted on all the entries whether these are provisions . becouse TDS must be deducted on all the amounts which are liable for TDS.

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M.Sriram Shenoy (CA Final) (814 Points)
Replied 09 May 2008

TDS should be deducted even on provisions made.No other go........!!!!!!!!

abhas duvey (Article Trainee) (25 Points)
Replied 10 May 2008

tds is deducted on due or paid basis whichever is earlier... then how we can deduct tds on provisions?..and if tds is deducted with provisions then how we will issue the tds certificates.....since parties name has not been credited in the books as on 31st mar.

Karnik (ARTICLESHIP) (0 Points)
Replied 10 May 2008

Pls tell me whether the interest received for late payment on accident Compensation of MACT claim is taxable or not? I m aware that the compensation is exempt in the hands of legal heirs but pls tell me the taxation effect of Interest recd. on the same.