Booking entry of 2010-11

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This query is : Resolved

Bharat Patel (Querist)

15 August 2011 SIR,

I HV. TO PAY SOME AMOUNT OF Rs. TO HOUSEKEEPING STAFF(CONTRACTUAL STAFF) WHICH WAS PERTAIN TO 2010-11 i.e. FROM OCT.-10 TO MAY-11. HOW TO PASS ENTRY IN BOOKS OF ACCOUNT OF 2011-12.

AND WHAT ABOUT TDS TREATMENT? i.e. FOR 10-11 & 11-12. SHALL WE HAVE TO PAY INT. ON TDS DEDUCTED FOR 10-11 & 11-12.

THANKS IN ADVANCE

Shyam Lal Naik

Shyam Lal Naik (Expert)

15 August 2011 So far TDS is concerned, the liability to deduct arises on the date of credit or payment whichever is earlier.

Since the period is upto May'11, it is presumed that there is a single bill or at least the bill was not available with the deductor till May'11.

The amount for the period up to March'11 shall be treated as prior period item and shall be shown separately in the P&L A/c for 2011-12, provided the amount is material.

In a tax case the tribunal had held that deduction will be allowed for prior period items, if provision could not made due to the bills were received belatedly by the assessee.

More views solicited.

Bharat Patel

Bharat Patel (Querist)

15 August 2011 Many many thanks to Shyam Lal Naik for giving guidance with an example of tribunal. I think this is the right way to describe answer, so one can clearly understand the effect of transaction in CBDT also.

Hope i will be co-op. as and when needed your help. pl. provide your mail id also so we can approach if required.

Shyam Lal Naik

Shyam Lal Naik (Expert)

15 August 2011 Thanks Mr. Patel.

You can drop mail to naikshyam@gmail.com

It shall be privilege if I can be of any assistance.

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