12 June 2010
A Trust follows cash basis of accounting. It has given its building for rent to a Company. Company credited to Trust account Rs. 21000 as rent payable on 31.03.2010 and made TDS 2100. Since the Trust follows cash basis of accounting, it will not account rent Rs. 21000. How to account for TDS of Rs. 2100? Please explain in detail?
15 June 2010
Since the trust is maintaining cash basis books you can account the TDS on the cash basis and the same can be claim the year in which Income is accounted
I am also of the same opinion. However, Since TDS certificate is issued for the year 2009-10, TDS amount to be claimed this year only & Rent will be accounted in the year of receipt.
CAclubindia
