T.d.s

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vineet sharma (Querist)
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02 May 2009 Sir,
Abc has deducted 10000 as tds on contract from other companies and other company has deducted 14000 From abc as tds on professional
So Abc has right to claim 4000 as refund from the government
Whether 4000 will be shown on the asset side irrespective of whether abc has filed tds return or not????
My second question is if 4000 was a liability to abc and abc has not filed the return then whether 4000 wil be shown as liabilty in the balance sheet or not???

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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02 May 2009 Whether 4000 will be shown on the asset side irrespective of whether abc has filed tds return or not????

Yes, it is a liability( irrespective of return files)

My second question is if 4000 was a liability to abc and abc has not filed the return then whether 4000 wil be shown as liabilty in the balance sheet or not???

yes, as soon as you deducted TDS a liability has arised to pay the same to Govt, within the specified time period, irrespective of return filed

K V Subba Rao

K V Subba Rao (Expert)
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02 May 2009 In the books of account of abc, Rs 10000 has to be shown on Liabilities side and Rs 14000 has to be shown on Assets side. Maintain two seperate accounts (LFs) and do not club them

For failure to deposit Rs 10000 recovered, prescribed interest provisions are invoked

For Rs 14000, this has to be treated as Advance Tax paid