Amount shown 26as not paid to party

Sir, your worry is justified.

You should not get any credit for TDS not related to you. This automatically will mean you have never received or earned the amount stated against TDS amount. But be sure that you should be so strong to justify to income tax and service tax authorities that the amount and TDS is not related to you.

Thank you so much for the advise sir. I shall be grateful if you could give your valued opinion on the following also:

1. One young consultant told me tht in  the form 26as, the concernbed column says 'amount paid/credited'. My casse may comes under 'credited' category and can be reversed by the client easily if I insist on correction. Is he correct?
2. I received a letter from the client stating thst the amount has been credited with the expectation that I would raise bill for the said smount and I should send in the bill urgently. The problem for me is I have not taken service tax registration last year since I did not expect to earn 10 lac or more last year. But if this smount is booked in the last yea,r it exceeds 10 lacs coming under service tax net. Thus if I accept the amount, is there any way I can pay service tax at this stage and book it for FY2011-12?
3. If I choose not to bill and submit the returns ignoring the amount which I did not receive, anf if the client is insistant on not reversing the entries, is there any unnecesssy risk of getting into detailed scrutiny with these epartments  which may be biggre pain?

Thanks in advance sir

Srinath

Mr Srinath

1. Yes the amount can be reversed or name and pan of deductee can be changed by adotping 'revised return' procedure and deductor can get ur name deleted. But the 'revising of return' is not as easy to e-file originally. Once deductor will revise it then second revision, in case need arises, would become more tedious. I fear deductor may not oblige you by revising return. Also in next question 2 you say deductor is expecting a bill from you.

2. The deductor is expecting Invoice from you and you should issue. Service Tax be deposited or paid by you on RECEEIPT basis i.e. you will pay to Govt on actual receipt of amount. In case Service Tax Deptt raised any demand you can also claim the amount of service tax paid on your INPUTS like telephone and services utilized. So you can skip FY 2011-12.

3. I have already answered it. If you choose to ignore then you must be enough strong (paper and argument wise) to justify that the amount reflected in my FORM 26AS is not related to me and I have not earned it.

vkbajaj1950 @ yahoo.co.in or

contact @ vkbajaj.co.in

Dear Mr. Bajaj,

Extremely thankful to you for the prompt reply reflecting your proffessional expertise and it answers my querries very well.

I will revert should I need further guidence.

Regards

Srinath

koganti.srinath @ gmail.com

Mr. Srinath,

You know the TDS is to be deducted 

- at the time of payment

- at the time of booking the expenditure in his books of accounts. 

 (the dother party is right in paying TDS to the Govt. and filing the return accordingly - as he must have been maintianing books of accounts under Mercantile system.

If you are not maintaining your books of accounts under mercantile system i.e ONLY then this problem arises.

If you are maintaining the books of accounts under mercantile system - you can't say you are not booking the 5.6 lacs as he has not paid. 

This has to be shown as a Sale in your P & L a/c and as a receivable in your Balance Sheet.  If you feel that the payment ca't be received as he is not accepting your calls then the formalities to be followed are entirely different. (about which I am not familiar)

Think before you leap........

Thank you very much Rambabu gsru for the advise.

If I have not received the amounty inn FY2011-12 and actually receive it in FY 2012-13, for the purpose of income tax payment, should I take it in 2012-13 and pay tax according to the slabs thereof  or pay tax in FY2012-13 in which yesr I may actually receive the income.

I am not from accountance field and sorry for ignorence in my question if any.

Thanks in advance

Srinath