tds deduction

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preeti sharma (Querist)
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16 April 2009 If a vendor is raising invoice up to the period 31.3.09 and Tds exemption granted to him is also up to the 31.3.09.but invoice of the same received after march what should be the right treatment?

should we consider tds exemption in April for the period up to 31.3.09? if yes why

chetan soni

chetan soni (Expert)
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16 April 2009 No you can't take the exemption certificate for next period as the expenses is pertaining to previous year.

In case if you the amount of bill as on the balance sheet date then you must make provision of it. So that atleast that amount will be counted for exemption & in case there is difference in bill amount & provision amount then make TDS deduction on balance amount.

It will give the benefit to both you & your vendor.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 April 2009 I beg to differ from Mr.Chetan if the following observations are correct.
Invoice is for f.y 08-09.
TDS exemption is for f.y 08-09.
Date of invoice is mar 09.
You have accounted in 08-09.
Tax need not be deducted though invoice dt mar 09 is received belatedly.