TDS ON PROVISION ENTRY

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Mukesh Katara (Querist)
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16 March 2011 tds is deducted on due or paid basis whichever is earlier... then how we can deduct tds on provisions?..and if tds is deducted with provisions then how we will issue the tds certificates.....since parties name has not been credited in the books as on 31st mar.

pls reply as early as possible,It's urjent.

Thanx in advance

sai swaroop munaga

sai swaroop munaga (Expert)
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16 March 2011 TDS should be deducted on the Due or paid which ever is earler. To deduct for provision, we don't need the names. The Names and pan no's are required only at the time of filling Quarterly TDS returns.

So, deduct the TDS at the time of booking Expenditure.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 March 2011 The main aim of this provision is that the TDS should be deducted on expenditure which the assessee is claiming (Provided the same attracts TDS). The provision here does not mean and assumption but the expenditure for services which has been obtained but bill yet to be received. For example Audit fees.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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16 March 2011 agreed,
if you are confused abt accural basis treatment of tds then as per expert you dont need to worry abt name bcs if you deduct provisionly then also you are deducting TDS. and now when file your ETDS return you need to give exact provisions bifercation which will tally with challan deposit by u later.
after filing ETDS return you can give 16A with provision amt and receipt no.too.

Mukesh Katara

Mukesh Katara (Querist)
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20 April 2011 Please clarify with relevant case laws & provisions.

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