Tds query

TDS / TCS 403 views 2 replies

S 2804

professional

24 Points Posted on 15 May 2013

Hello,

I run a proprietorship firm and this will be my first year to file IT returns as proprietory business.

My query is as follows:

I raised an invoice of rs. 5 lakhs to our client's agency (thru which i receive the payments and the agency in turns gets its payment on reimbursement basis from our end client) in the month of February 2013. The work was completed and delivered in the month of March 2013.

On 31st march it was noticed by the client that some of the articles that we shipped were bruised during shipment and hence we were summoned to correct the damages and were told that we will be receive the payment post completion of the rectification work. accordingly we received our payment in April 2013, however we realised that the agency thru which we received the payment has deducted and booked our TDS on 31st march 2013.

Can we claim for a TDS refund in FY 2012-2013? Will this amt i.e. Rs 5 lacs be treted as our income for FY 12-13 or FY 13-14?

Thanks in advance,

Replies (2)

Ankit

CA CS

3064 Points Posted on 15 May 2013

Dear Sanyogita,

it depends on whether the books of accounts are maintained on cash basis or accrual basis. if they are on cash basis, the TDS amount will be the income of the L.Y (since it was credited in the L.Y and can be claimed in the a.y 2013-14. the balance amount will be income of a.y 2014-15 since it is received in the next yr.

if books are on acrual basis, both the net receipt and the tds will be income of the a.y 2013-14