Tds in provisions

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the correct TDS rates to apply when booking March bills that were received in April but dated in April. The consensus is that since the provisional entries were made in March, the TDS should be deducted at the rates applicable for the financial year ending March 31, 2021. This means using the reduced rates of 7.5% for Section 194J and 1.5% for Section 194C.

hinduja

hinduja (Querist)
Follow

13 April 2021 we are booking march bills, dated 1.4.2021.
bills are recd in April and dated 1.4.2021 /2 4.2021/3.4.2021

we are debiting expense and crediting provision for expense

do we need to book tds and

do we need to book tds at new rate (10% /2%) or reduced old rates 7.5%/1.5%) for 194 J and 194C

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
Follow

13 April 2021 Since provisional entries are made in March itself, you need to deduct tax at source at applicable rates for March (i.e. at reduced rates for FY20-21)

Message likes : 1 times

hinduja

hinduja (Querist)
Follow

18 April 2021 thank you for the clarification

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now