Dear all
Pls Clarify that is it necessary to deduct TDS on the provisional(expenses) entry made on 31st march .
19 Replies
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 01 June 2011
yes, it is necessary to deduct TDS on provisional expenses
Pankaj Arora
(Job)
(150 Points)
Replied 01 June 2011
Dear William
Yess. TDS is reqd. to be deducted on provisions. The relevant sections(such as 194C, 194H, 194I, 194J etc) specifies that the tax is to be deducted at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. Further, explanations in these sections specifies that any such sum is credited to any account, whether called "Suspense Account" or by any other name, in the books of accounts of person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of the relevant section shall apply accordingly (generall explanation 2)
Prasad
(Sr. Manager)
(617 Points)
Replied 01 June 2011
Agree with all the above messages
you should have also deposited TDS by end of may for provisions.
TDS not deducted the amounts will be disallowed in your income tax computation and it is allowable in the year you deduct TDS and deposit.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 01 June 2011
yes ,it is necessary,otherwise expenses are not allowed
CA Gaurav Rastogi
(Finance & Account Officer)
(189 Points)
Replied 02 June 2011
Tell Me what would be the book entry in this case and what will be the treatment when the bill comes in April say, and the amount of the bill differs from the provision you made.
Ravindra kumar
(student)
(87 Points)
Replied 02 June 2011
we also request to all
what would be journal entry for Provision ?
Pawan Kr. Tomar
(CA)
(169 Points)
Replied 02 June 2011
| Originally posted by : Gaurav Rastogi | ||
 |
Tell Me what would be the book entry in this case and what will be the treatment when the bill comes in April say, and the amount of the bill differs from the provision you made. |
 |
Differ amount is charged in current year expense (in case excess expenses than provision made) or as an Income (in case short expenses than provision made- reversal of short expense charged). Both the entry will come under current year financials. In situation provision of AS-4 also be considered.
Rahul
(2nd group pending)
(97 Points)
Replied 02 June 2011
Dear Pawan, i think you have to pass the entry in the month of March and the TDS on balance amount with interest of one month needs to paid.
k.chandra shaker
(accounts exe)
(21 Points)
Replied 02 June 2011
yes it is compulsory entry of financial year
puneet khurana
(finance)
(75 Points)
Replied 02 June 2011
dear mr rustogi. though the provisional amount may be different from actual amount. it no matters. we need to comply the income tax requirements. and the requirements says we need to deduct the tds on 31 march though on provisional amount.
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