for delay in makes entry in books of a/c

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anand (Querist)

22 December 2009 Sir
I want to ask that if any copany is not entered the bills in due time and he deferred the same for avoidation of interest on Tds what is the consequency about it

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

22 December 2009 By adopting wrong accounting practices you cannot avoid interest on TDS.

Better pay interest immediately which is not so heavy.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

22 December 2009 Its depends upon deduction not in book entry to your company .when you deduct TDS you have to deposit on before next month 7 date.and also file tds return if your fails there is always penalty & interest arrives.

anand

anand (Querist)

22 December 2009 My question was not about deduction or book entry, company is under leagal obligation to deduct tax at the time of credit or at the time of payment whichever is earlier and deposited the same on or before due date on wich tds are applicable
I am trying to give my query through an example
Suppose a company are receive a bill on dated 10th may from its vender for the month of April but he has not credited the books on same day and he differed the same and credited in month of October and during this period he has not make payment to its vender. Is compay are liable for interest if company are deposit the tds amount on 7th November

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

22 December 2009 But company has to follow the accural basis accounting is the fundamental accouting policy, we cannot delay like that

anand

anand (Querist)

23 December 2009 Sir
Interest should be consider or not? if yes, from which date? if company has credited its only on october which is related to month of april

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