bhavna (ca-final student) (120 Points)
30 July 2010Can TDS be deducted before making the payment to the party?
some party had wrote a cheque for payment of professional fees in our co.'s name and had also deducted and deposited Tds thereon in the last A.Y. but we have received the cheque in this A.Y. now how do we claim credit for the TDS so deducted?
Harpreet
(* * * * * *)
(1670 Points)
Replied 30 July 2010
Claim the TDS in company's income tax return for a.y. 2010-11 if deducted in f.y.2009-10. Why are you worrying about this lot???
Atul Gupta
(Ca final Article)
(39 Points)
Replied 30 July 2010
Hii Bhawna,
Tds is deducted at the time of Booking of expense or payment whichever is earlier, So deductor is right,
Accounts are maintained on accrual basis so i think you too booked it as Income in that A.Y. ,and you can claim TDs whenever you received the TDS certificate.
bhavna
(ca-final student)
(120 Points)
Replied 30 July 2010
In that case amount of TDS Receivable in Balance Sheet will differ from the TDS claim in Income Tax Return. Will that be ok?
Atul Gupta
(Ca final Article)
(39 Points)
Replied 30 July 2010
credit will be allowed only for the Actual TDS certificates which you presented, A.Y. is irrelevant..
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
