TDS Credit
This query is : Resolved
15 July 2010
A company has recd some commission Income in AY 2010-11 and accordingly booked the same in the accounts. However, the other party has booked the expenditure in AY 2011-12 and accordingly the TDS is deducted in AY 2011-12. Can the company book TDS Credit for AY 2011-12 in advance? What could be the alternative treatment in the books of the company?
15 July 2010
YOU HAVE TO SHOWN IT IN AY 2010-11 AS ADVANCE. AND BOOKED AS INCOME IN AY 2011-12, BECAUSE PARTY HAS CLAIMED IT ALSO IN THIS YEAR. BY THIS WAY YOU CAN CLAIMED TDS CREDIT ALSO EASILY.
UNTIL & UNLESS OTHER COMPANY BY WHICH YOU HAVE RECD AMOUNT , HAS NOT BOOKED IT as EXPENSE, THEN HOW YOU CAN TREAT IT AS INCOME.
UNTIL & UNLESS OTHER COMPANY BY WHICH YOU HAVE RECD AMOUNT , HAS NOT BOOKED IT as EXPENSE, THEN HOW YOU CAN TREAT IT AS INCOME.
15 July 2010
Sir,
Thank you for replying. The other company has claimed it as expenditure and also issued the TDS Certificate but in the AY 2011-12. However, the company which has recd the money wants to the show the Income in AY 2010-11. Accordingly, it has shown the Income in P&L A/c and TDS as TDS Receivable AY 2011-12 in its books though the credit for the same is not claimed. Is the approach adopted by the company is correct? Whether it can claim TDS Credit in next year & show Income in current year?
Thank you for replying. The other company has claimed it as expenditure and also issued the TDS Certificate but in the AY 2011-12. However, the company which has recd the money wants to the show the Income in AY 2010-11. Accordingly, it has shown the Income in P&L A/c and TDS as TDS Receivable AY 2011-12 in its books though the credit for the same is not claimed. Is the approach adopted by the company is correct? Whether it can claim TDS Credit in next year & show Income in current year?
15 July 2010
NO, IT IS BETTER TO SHOW INCOME & TDS IN AY 2011-12. OTHERWISE IT MAY BE POSSIBLE THAT AO ISSUE NOTICE YOU IN AY 2011-12 FOR UNDER-ESTIMATE THE INCOME.
15 July 2010
the company can show income in the AY 10-11 and claim TDS in the same year i.e., 10-11. TDS is allowed in the year in which income related to that TDS is shown. pl. read section 199 of the Act
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- Annual return in Gst
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
