Accounting

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This query is : Resolved

KAMALAKANTA SAHU (Querist)

24 June 2015 We the service providing Pvt. Ltd Company we start service in the month of march 2015, after 30 days we issue invoice & book income in the month of april 2015 & service tax deposited in the month of May 2015. But the party booked expenses & tds deducted, shows in 26AS in the month of march 2015. In that case what will we do the accounting & tds entry in the month of march 2015.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 June 2015 you can book the TDS in current year in which you have booked the income

KAMALAKANTA SAHU

KAMALAKANTA SAHU (Querist)

25 June 2015 Dear Ramesh Krishnan Ji,
As per your opinion TDS mismatched as per 26 AS ( 26AS shows our TDS in Previous year & We booked next year) is it justify ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

25 June 2015 Basically as company, you have to follow the accrual system of accounting and raise the invoice at March end itself. since you have raised in the April, so income has been recognised in the next year. you have 2 options

1. Either you also book the TDS in the March and claim the TDS last year itself ( this will mismatch your income and TDS)

or

2. You can revise your bills also in March and accordingly book at the last year and claim the TDS

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