Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 I am doing an audit of a company. The bill received by it regarding Professional and Consultancy charges is on 31st July 2014. But they have recorded it in 31st March 2015. Will this cause any problem in TDS. its Bill amount is Rs 482184... Will This cause any problem at all ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 April 2015 Not a problem. TDS liability arises when payment is made or liability created which ever is earlier.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 I understood the TDS part, but in addition to it, will this situation cause any problem in any other things that u can think of??

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 I did get an email regarding answer of the second question.. but couldnot find it..

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

29 April 2015 Basically it is late accounting. following issues

1. Company has to follow the accrual system of accounting.but this case expenses incurred July-14 and booked Mar-15. since booked the same financial year. no issue with late accounting

2. In case of TDS- TDS will apply on expenses booking or payment which ever is earlier.- this case Invoice dated 31st July. probably, bill might have got paid, so check that date for TDS application.

3. If the professional bills covered under service tax RCM.- once service received, recipient liable to pay the service tax subject to some conditions. check the same

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