Tds bare by deductor

This query is : Resolved

Sriram (Querist)
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14 December 2012 PLEASE TELL ANYONE IF TDS BEAR BY DEDUCTOR ITSELF FOR TDS LIABILITY, IN THIS CASE SHALL WE DEDUCT THIS (TDS PAID BY DEDUCTOR) IN P&L AS ALLOWABLE EXPENDITURE?

Mohit Naithani

Mohit Naithani (Expert)
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14 December 2012 No.

After geting TDS certificate from deductor you should post an entry mention below:

TDS Reveivable (12-13) A/c Dr.
To XYZ Ltd (Deductor) Cr.

The entry is not effet to P & L in any manner..

Sriram

Sriram (Querist)
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14 December 2012 whether this expense is allowable in deductor's book?

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Mohit Naithani

Mohit Naithani (Expert)
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14 December 2012 No.
any Direct Tax (Income Tax / Wealth Tax) liablity is not allow to deduct u/s 37 of income tax act 1961 from the income of PGPB. Either Its should be debit to your accuont by deductor and recoverable from you and if you are not giving the same then it should be book as "Bad Debts" by deductor.