TDS on provision of audit fee

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This query is : Resolved

Ram Singh Poswal (Querist)

12 June 2008 Is TDS duductabe on provision of audit fee (In this case nither bills received nor payment made only provision made in balance sheet).

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

12 June 2008 if provision is made in excess of rs 20000/-then tax is deducted & paid before 31/05/2008 new amendment is made if march tds is to be paid before filling of income tax return u/s 139(1)

C.A Rohit Gambhir

C.A Rohit Gambhir (Expert)

12 June 2008 Section 194 (J) Provides TDS needs to be deducted & deposited in the following Situations :-
(1) On payment of any sum.
OR
(2) At the time of credit of such sum to the account of Payee.

Whichever is earlier.

Pls see this note :

Where any such sum is credited to any account whether called "Suspense Account" or by any other name in the books of accounts such crediting shall be deemed to be credit of such sum to the account of payee.

Your case falls in the category mentioned above. Therefore you need to deduct TDS & deposit the same.

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