Tds on provision and actual bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2014 Provision for expense is created on 31st Mar, 2014 but actual bill is received for lesser amount. on what amount TDS to be deducted. If TDS paid on actual bill then will there be any disallowance on difference amount, or paying TDS on higher amount is advisable.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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29 April 2014 since ur going to adjust the exp a/s it is advisable to deduct on actual amount only.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 April 2014 you need to deduct on the provision amount as at 31 March 2014. what happens post 31 March is not relevant as far as creation of provision and TDS thereon as at 31 March.

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