Provision by the vendors

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This query is : Resolved

Kaushik Vinod (Querist)

24 June 2013 Dear Experts,

We render manpower services to Aviation Sector during the year we raise Invoice to them and they make payment of the same but in the month of March they have made a provision of 700000 and deposited TDS of 70000 on the same.
Now Do we need to book this 700000 as our Income and take credit of TDS OR we can ignore the Income and also TDS ?
Our Tax Liability is Coming very high.

Guest

Guest (Expert)

24 June 2013 You Should not ignore

CA Parul Saxena

CA Parul Saxena (Expert)

24 June 2013 If the TDS is reflecting in 26AS then you must take credit of the same.....but if you would consider TDS then you must also account for income corresponding to that i.e.700000/- so there would not be much impact on reduction of existing high tax liability.

Kaushik Vinod

Kaushik Vinod (Querist)

19 July 2013 What is the right legal decision to ignore or to account for the Income >

CA Parul Saxena

CA Parul Saxena (Expert)

23 July 2013 to account for the income

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