12 April 2010
Why amount is not credited to the auditor account. There is a supreme court ruling that if you could not identify the beneficiary then you need not deduct tax at source. There should be appointed auditor. If no auditor is there then who is going to sign the Balance sheet.
Dear Sir: I'm in complete agreement with you. But in case of larg scale companies, though they had appointed auditor / fixed their remuneration, they pass this kind of entry to escape from the provisions of TDS. Does this create any problem at the time of assessment ???
12 April 2010
As in section 194J it is specifically given TDS is to be made at the time of payment, credit to respt. account or amount transfered to suspense account whichever is earlier. At the time of assessment, A.O. will disallow audit fee exps.
CAclubindia
