I have a accounts work for A Proprietors firm in past 5 years. This Assesse's ITR filing one of the Chartered Accountant (FCA). This Assesse get TDS deduction from some Customers for Contract works. The past years TDS amount Rs.235642. These all TDS amounts shown in Balance Sheet under Current Assets like Revenue Authorities. The TDS amount also adjusted/computation in his ITR for every year.
Experts, My Questions/Doubts.,
1. Why these TDS amount shown in Balance Sheet under Revenue Authorities or Current Assets...? 2. What is the rules for maintain TDS amounts in Balance Sheet...? 3. How many year will be follow the TDS amount under Revenue Authorities...? 4. The same rule in Partnership Firm...? or Not...?
18 December 2016
TDS receivable is considered current asset. What ever TDS credit us available to be adjusted against Income tax. IF Tax Liability Is less than TDS receivable you have to adjust the same against tax balance shown as TDS receivable. If Tax liability is more than TDS receivables than extent of TDS will be adjusted balance tax provision to be passed. So there will be no TDS Receivables.
Tds receivables once received refund to that extent to be reduced. So what ever TDS Receivable should match to the extent outstanding refund.
19 December 2016
Dear Sir., Thank you for your reply... The same rule in Partnership Firm...?!
I have another account from A Partnership FIRM. Their customers deducted TDS for Contract works. I filed manually AY 2013-14 & AY 2014-15. Bcoz, They get notice "Non-Filing of returns". Sir, I filed this returns/Balance sheet also above mentioned ruled. The two AY's TDS amount Adjusted and balance tax liability paid to ITD. Now, AY 2015-16 preparing based their books. Calculated Tax they want Refundable after computation. So, How to I Prepare the Balance sheet with TDS amount...? Please reply Sir., I want very urgent... Pls
23 December 2016
Yes, same rule apply to all firm , if refund is there 2015 - 16, you adjust to the extent of tax liability, Balance show receivable to the extent of refund. Once refund. You credit tds receivable debit bank.
24 December 2016
Dear SIR., Thanks for your reply... I'm not understand this one... Please clear this one, if your valuable time... FY 2013-14 > 14550 - 11596 = 2954 (Tax liability - TDS = Tax Paid FY 2014-15 > 17390 - 16222 = 1168 FY 2015-16 > 20320 - 22654 = (2334) Refundable... I maintain that TDS amount under Revenue authorities for FY 2013-14,2014-15 (27818). FY 2015-16 TDS amount also refundable. If how to i adjust the TDS amount. Please reply any one example...
CAclubindia
