Tds on Provision of professional fees

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This query is : Resolved

bhagwat Indore (Querist)

13 October 2016 If client has booked the provision and deducted TDS and paid before 31 st march, what be the effects in our books ? can we show this TDs receivable in our books?

Anand

Anand (Expert)

14 October 2016 Yes you can. In fact he will also issue you the TDS certificate and this amount should appear in your Form 26AS

Amol S Joglekar

Amol S Joglekar (Expert)

14 October 2016 In our books, We MUST show it as TDS.
Normally such a situation arises when Deductor is following Mercantile system and Deductee is following Cash system of accounting. This results in the dilemma as to when the said TDS be claimed in return of income.
The choice is with the assessee : either claim it in the year of deduction or claim it in the year in which the income is accounted for.

Anand

Anand (Expert)

14 October 2016 Amol, will there be any impact of ICDS now on compulsion to have mercantile system of accounting.

Amol S Joglekar

Amol S Joglekar (Expert)

16 October 2016 yes, we need to report the impact, if any

bhagwat Indore

bhagwat Indore (Querist)

24 October 2016 thanks sir

Amol S Joglekar

Amol S Joglekar (Expert)

25 October 2016 you are most welcome