TDS on Audit Fees

This query is : Resolved

Ashish Sharma (Querist)
Follow

29 September 2010 Dear Experts,

We have made provision for audit fees in last year and not deduct any TDS on that. now in new F.Y. we received the bill and with other bills of CA it crosses the limit of 30000/- Now My query is that will Audit bill count for 30000/- TDS limit for TDS on professional charges in new F.Y. year or not. my confusion is that we have credited this amount in last year in our book. so it will calculate in L.Y. or in new F.Y.

CA Punit

CA Punit (Expert)
Follow

29 September 2010 Since the provision is related to last year, Tax should have been deducted at rates & limits applicable that time.

The rates & limits are to be reckoned at the time of deduction & not payment.

Other opinions appreciated

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

29 September 2010 Limit as on the date of tax deductible to be seen not at the time of payment. Also the fees must have been disallowed in the previous year. So you have to deduct tax in this year and pay to get the expenses allowed in the current year.

Ashish Sharma

Ashish Sharma (Querist)
Follow

29 September 2010 Aditya Sir,

I have booked Expenses as Audit fees and provision of audit fees payable in F.Y. 2009-10 at that time only audit fees Amount credited in CA's A/c so at that time I did not make TDS Deduction as its not crossing the limit of 20000/-. Now, F.Y. 2010-11 CA give me Audit fees bill current F.Y. date. and with this bill and other bills crosses the limit of 30000/- my question is do i count L.Y. audit fees bill which i receive in current year in 30000/- limit or not.As i have booked it in last year in my books.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

29 September 2010 20k already provided in earlier year. So this year expense is 10k only and hence no need to deduct TDS in current year.

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