TDS on Provision
This query is : Resolved
12 April 2010
I would like to know that, Whether TDS is to be made on Provisions.
i.g. By Audit Fees Dr.Rs.50000
to Unpaid Audit Fees Cr.Rs.50000
[Amount is not credited to the Auditor's a/c.)
i.g. By Audit Fees Dr.Rs.50000
to Unpaid Audit Fees Cr.Rs.50000
[Amount is not credited to the Auditor's a/c.)
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.
12 April 2010
First of thanks a lot for reply.
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 ???
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.
At the time of assessment, A.O. will disallow audit fee exps.
12 April 2010
you will deduct TDS on provision.
if provision is made on 31st March then you can pay TDS till 31st May.
if provision is made on 31st March then you can pay TDS till 31st May.
13 April 2010
AGREE
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