13 September 2010
We are following cash basis accounting , our client is following mercentile basis, now he has given me TDS certificate but i demanded a TDS Certificate based on payments i.e. spiliting of tds certificate and he ask me under which clause/section it is written to give TDS Certificate on the basis of payments , plz help.
13 September 2010
There can be a different modes of accounting.
Like, often a company book audit fee & its TDS in previous FY, while the CA firm accounts it after audit, when they generate the bill & get the payment.
It hardly matters...
Even if your party's TDs certificate shows previous year, you can claim the TDS in current year , if you are showing the corresponding income too, in the current year.
15 September 2010
As far as issuing/giving TDS certificate to the deductee, according to the TDS provisions of I.T. Act, it has to be issued for the financial year in which bill amount has been credited or paid; whichever is earlier. Therefore even if bill payment has not been made to the deductee, deductor has to deduct TDS from the due amount and has to pay to the credit of the Central Government and at the end of F.Y. will issue TDS certificate. However, as far as deductee is concerned, while following cash basis of accounting, it has to claim TDS in the financial year in which it is issuing bill to the deductor.
CAclubindia
