Tds on provision

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2012 I DID THE PROVISION AS UNDER
DEBIT TO LABOUR CHARGES RS.37000/-
CREDIT TO OUTSTANDING LIABILITY IN 11-12
NOW IT NEED TO DO THE PROVISION OF TDS ON PROVISION.

BILL WILL BE ISSUE BY CONTRACTOR IN NEXT YEAR 12-13

Ki$hor B

Ki$hor B (Expert)

28 April 2012 Seems you want to know whether provision you have made attracts TDS.

Yes, deduct the TDS and deposit the same before 30th April.
File your TDS return by 15th May.

Sanjana

Sanjana (Expert)

28 April 2012 Yes, TDS is required to be deducted on all Provision for Expenses (i.e. Expenses on which TDS is required to be deducted) else the Expenditure would get disallowed u/s 40a(ia). Also to claim the Expenditure in the F. Y. 2011-12, you will have to pass the TDS Deduction Entry in the F. Y. 2011-12 and pay the TDS before the due date of filing the Return of Income for the F. Y. 2011-12. Incase you pass the Entry for Deduction of TDS on Provision for Expenditure in the F. Y. 2012-13 then even though you pay the TDS before the due date of filing the Return of Income then the expenditure would get disallowed in the F. Y. 2011-12 and will be allowed only in the F. Y. 2012-13.

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