TDS on Provision

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SAMEER UPADHYAY (Querist)
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23 October 2009 A company made Provision for Audit Fee on 31st March,2009 but didn't credited auditor since bill is not received so far.Also there is no payment made against this head.Please tell me when the liability for TDS arise.
No TDS deducted/deposited so far.What will be the consequenses?

Thanks
Sameer

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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23 October 2009 Yes, TDS to be deposited within 31st May 2009, otherwise the audit fees will be disallowed for Income TAX purpose.

Non receiving of Bill or non payment of fees is not required as the audit fee is credited to Auditor on 31.03.2009

SAMEER UPADHYAY

SAMEER UPADHYAY (Querist)
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23 October 2009 Auditor is not credited yet. Provision made by debiting Audit Exp.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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23 October 2009 I think the booking/debiting of expenses mean the amount is credited to recipient’s. As provision is made for audit fees its amounts to credited.

However the expenses ( audit fees) will be allowed in next assessment year(2010-11) if TDS paid after 31.05.09

See Sectoin 40(a)(ia)

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