Tds issue on audit fees

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2012 The Audit is conducted after the year end, after 3 or 4 months & bill is given thereafter by CA Firm.
However, provison for expenses is made & P & L is debited with expense.
TDS has to be made at the time of payment & Auditor will take TDS credit for the next year only, as he books the Income on cash basis in the subsequent year after Audit.
How to resolve TDS issue ??

What is the view , kindly render detailed opinion.....

S Sivasalapathy

S Sivasalapathy (Expert)
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22 August 2012 If TDS is credited in 26AS in previous year, the same can be taken for subsquent year, if is not taken in PY.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2012 Sir, can u explain wid some detail......

prateek aanchalia

prateek aanchalia (Expert)
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22 August 2012 when audit fees booked in ur books of accounts than u required to deduct TDS and deposit same in Govt.
i.e. u booked audit fees for closing year on provision basic i.e. u require to Deduct tds on provision of audit fees in those accounting year..

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2012 Ok, TDS will be deducted on provision basis in the same year, but CA firm will book the same on Cash basis on next year, then how can Audit firm claim Credit of TDS?? In which year?? I hope you got the hint what i would like to say????

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