tds--- need reply urg

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kavita (Querist)
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05 March 2009 lack of information- we did not deduct tds from the rent (07-08)given to our landlord( soleproprieter)--
realising our mistake- we have now paid it-
the problem is: our ca says: calcutaion of tds as it was not paid last year (07-08)is
eg we paid 14k so tds calculation will be
14,000 rent tds ==2,558(14k*84.55*15.45%):--- which he says is necessary as otherwise we cannot account for thie tds in the last years figures!!!

for us it does not seem logical as as per this the rent we paid goes up. and we are paying extra tds every month & the same applies to interest on tds also.
as per us it should be 14k* 15.45%--2163/-
and our agreement with landlord is 14k?? how can we show more rent?? tomorrow it filing will be issue.

although we have paid the excess amount, but our filing is done as per actual's.that is 14k +2163+interest

can someone guide me as to the exact provision?? and whether the excess paid( more than 5k) can be used to make show tds paid in current month feb-09?

i feel lost as am getting contradictory replys from others

pls help.......!!!

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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05 March 2009 HI KAVITA

WHAT UR CA SAYS IS CORRECT .

BUT ALTERNATIVELY U CAN PASS ENTRY AS CREDIT TDS PAYABLE AND DR. ADVANCE RENT PAID SO UR RENT PAYMENT WILL BE AS PER UR RENTAL AGREEMENT AND WHATEVER TDS NOW U ARE DEDUCTING CAN BE ADJUSTED AGAINST FUTURE PAYMENTS OF RENT. HENCE IT CAN BE TREATED AS ADVANCE RENT PAID IN THE BOOKS OF LAST YEAR.
BYE

kavita

kavita (Querist)
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06 March 2009 Hi! Huzaifa,

Thank you for the prompt reply,

Our landlord is refusing to give us any credit for the amount of tds we have not deducted, we will have to write it off as loss!!!

so i cannot take it as advance rent- But what are the implications if the tds is not allowed as exp in the last years books, can we book it this year??

also the excess we have paid( to govt), can i use the amount to show tds paid for feb-09, and march -09??

pls revert thanks

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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06 March 2009 No, you cannot treat TDS as expense in the P&L account nor you can adjust the last year TDS with the current year.

You are liable to deduct TDS last year but you didn't done so. If you have shown this as payable in the books of last year and paid it in the current year then it will be automatically adjusted you dont need to make any adjustments.

If you dont deduct TDS your rent expenses will be disallowed, so you have no chice.

You can just make less payment to Landlord in the current year.

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