TDS on Provisional Expenses

This query is : Resolved

Arun (Querist)
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10 December 2007 On 31-03-07, We made some provisions for professional fees.
We deducted TDS @ 5.1% at Rs. 6,00,000/-
Now on receiving final invoices party has given invoices of Rs. 5,00,000/- only and current rate of TDS is 10.3% for professional fees.
Now, What will be out treatment of TDS on these invoices?

CA. Vineet Grover

CA. Vineet Grover (Expert)
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10 December 2007 Hi Arun,

There is no room for error for deduction of TDS.

In the instant case, you have deducted TDS amounting to Rs.30600/- which should have been Rs.51500/-

You would have to deposit the differential amount of TDS amounting Rs.20900/- and go for a revised return for the last quarter.

Rgds/

Vineet

Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 December 2007 Hi,

The rate of TDS applicable on the date of credit/payment which ever is earlier is relevant.

You have already credited the party's account on 31.03.2007 and have already discharged your tds liability.

Now on receipt of the final bill, you will not credit the amount to the party's account. Rather you have to debit the account of the party by Rs. 1 lac. Hence there is no libility for payment of tds.

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