27 August 2009
Respected Experts, When professional assessee is following cash system of accounting and the remmiter is following accrual system of accounting- in the matter of TDS what is the solloution. As the remmitter will claim deduction after deducting the TDS and the assessee can not claim the same as he has not received. Do professional have exemption from the rule- TDS can be claimed in the year of Deduction only. kindly guide. Thanks
27 August 2009
There are two way of accounting the TDS in professionals books of accounts;
01. Account for only TDS for the year cutting receipt & claim the TDS in the same year as per TDS certificate.
02. Account for only those TDS for which the receipts accounted for & claim only that portion of TDS in return of Income. Claim the balance TDS in the next year when we account for that receipt.
Generally people follow option 1. In option 2 you need to maintained the record TDS for two years & also there are chances that the AO will make objection on the same.
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