TDS on Provisional Entries

This query is : Resolved

Sindhu (Querist)
Follow

17 January 2008 In case of companies which makes provisions for expenses for MIS reasons at the end of every month as a few bills might not been received and further reverse the same in the following month on the receipt of the bills from the concerned parties and pass a fresh entry to give effect for the same(TDS is made on reversal of first entry and passing of the actual entry) Whether the entry is right?? I feel it is wrong. I need an expert advice for whatever is the answer.

ASHISH YADAV

ASHISH YADAV (Expert)
Follow

17 January 2008 Dear sindhu,

As per ur query,if for MIS purpose the provision are made at the month end and in next month the enteries are reversed then,it is clear my friend that tds should be made on the actual bill not on the provisions made for that bill.

there is no provison in Income tax act to make provision for tds on Accruals.So for MIsS reasons companies make accrual enteries not on actual, so no question of TDS reserve.

Sindhu

Sindhu (Querist)
Follow

22 January 2008 Well.. so u mean to say that TDS has to be made only on actual receipt of teh bill.... i.e on actual basis alone..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok