TDS PROVISON WE ARE MAINTANING A/CS CASH BASIS

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This query is : Resolved

CA Hemant T Dewani (Querist)

14 August 2008 A PROFEESSIONAL PERSON MAINTAINS HIS A/CS IN CASH SYSTEM DURING THE YEAR PARTY MAKE J V PROFFESSIONAL FEES PAYABLE & TDS IS TO BE DEDUCTED & HANDOVER TO US WHETHER THIS TDS AMOUNT IS TAKEN AS INCOME IN OUR BOOKS OR WHEN WHOLE AMOUNT IS RECEIVED THEN TDS AMOUNT IS TAKEN AS INCOME

CA. PRASAD

CA. PRASAD (Expert)

15 August 2008 sir, to my opinion, when a professional maintains his accounts in cash system during the year then he will have to show the income of the receitps on cash basis only even if the party makes JV and TDS on mercantile basis. further, the professional can claim the TDS made by the party in the year in which the respective receipts are actully received by him even thogh it may relate to any previous year.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

16 August 2008 In my opinion, TDS amount shall be taken as Income for the year. Rest amount shall be considered income of the year, in which it is actually recieved.

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