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CA. Jyoti Baid (Querist)
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26 May 2010 Respected All,

The company has received an Invoice dated 20.05.2010 for the period from 01.01.2010 to 31.12.2010.

In which financial year should the company provide for the expenses and deduct the TDS?

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CA Archana

CA Archana (Expert)
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26 May 2010 It should be done on as per the receipt date of invoice and TDS should also be calculated accordingly

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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26 May 2010 You have to make provision in last year for this expense as on 31st March 2010 and deposited tds before 31st May 2010. otherwise it will be disallowed in current year as prior period items.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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26 May 2010 Agree with the view of Mr. Bansal.

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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26 May 2010 Receipt date of invoice is 26.05.2010

Shyam Lal Naik

Shyam Lal Naik (Expert)
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26 May 2010 Irrespective of the date of receipt of the invoice, the entry can be taken on the balance sheet date, in terms of AS-4.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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26 May 2010 AGREED WITH MR. NAIK.
YOU CAN TAKE EXAMPLE OF TELEPHONE BILL, POWER BILL IN WHICH BILL DATE IS CURRENT DATE. BUT WE HAVE MAKE PROVISION ON 31ST MARCH ITSELF.

CA Archana

CA Archana (Expert)
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27 May 2010 I too agree that in respect of TDS but if the invoice amount was not at all in the knowledge of accountant then he will be required to do it on the date of bill date along with expenses for previous year(3 months).

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