TDS MATTERS

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maheshkulkarni (Querist)
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15 May 2008 As relate to the company who is in receipt of Form 16A forms from the parties who have deducted TDS, The TDS receivable account under various parties should be closed, if yes how the accounting entries is to be passed.
I have got a view from te accountant that these accounts will be kept till the assessment is done.
Is it correct?
All these points have arisen during the course of Statutory audit of the company.
Kindly advice and thanks in advance.
Message to maheshkulkarni29@gmail.com

CA SHARAD SINHA

CA SHARAD SINHA (Expert)
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15 May 2008 TDA IS NOTTHING BUT ADVANCE TAX EVEN BY DEFINITION U/S 199 ACCORDINGLY I SUPPORT THE ACCOUNTING TREATMENT ADOPTED .HOWEVER IN THIS REGIME OF SELF ASSESSMENT THESE ENTRIES SHOULD BE REVERSED BY THE DATE OF FILLING OF THE RETURN OR AT THE MOST WHEN THE FINANCIAL YEAR BECOMES TIME BARRING

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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15 May 2008 i agree with Sharad and add further:

In my opinion, when you make the entry of income tax expense for a year in your books, you should adjust all such accounts like tds receivable and advance tax (both accounts for that year), with that expense and balance should be trfd in tax payable or tax refundable a/c, as the case may be.

example:

income tax exp. dr. 900
tax refundable dr. 100
to advance tax 800
to tds receivable 200
means you make entry simply as you have shown tax in your i.t. return.

you don't need to kept open these account merely for sake of assessment, tds certificates will cater to that purpose.

maheshkulkarni

maheshkulkarni (Querist)
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17 May 2008 Thanks for Mr Sharad and Tyagi in resolving my query

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