TDS receivables

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maheshkulkarni (Querist)
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31 May 2008 As relate to PVt LTD Co Stat Audit, I find in Accounts, TDS receivables Accounts from 2004.05 onwards and the company has not even collected Form 16A Forms and not set of with Tax payable or refundable.
Now for 2007 08 stat audit we want to clean of these accounts, How do I close these TDS receivable accounts which the client did not set off in prev years and not even having Form 16A supportings and the company also do not collect now and is interested to close the accounts.

Will there be any tax implications.

Please advice me by sending mail to maheshkulkarni29@gmail.com and thanks in advance.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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31 May 2008 Form 16A supportings? These might have been submitted with IT dept. Pls go through the IT files and assessment order/self assessment and make the adjustments.

The adjustments has to be done as per the IT records only and question of cleaning etc. does not arise.

maheshkulkarni

maheshkulkarni (Querist)
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31 May 2008 Sir,
The problem which the client is facing is that the client has not collected the form 16A forms during those relevant years. Now also the client is not interested to collect them.
As related to the self assessment done by the assessee the Tax Deducted at Source is adjusted only for the form 16A supportings which the related accounts are already closed.
If this is the case, Then how do I move.
Kindly send me the message to maheshkulkarni29@gmail.com.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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31 May 2008 Just writeoff the amount. In my opinion it will be an allowable expenditure, as the amount is akin to bad debt. How ever lets see some more opinion.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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02 June 2008 i don't think it is a bad debt, there is no default by other parties in payment or in discharging their obligations. it is fault of this co. that it failed to collect tds certificates in time.

i.t. act does not allow deduction of tax/tds. so, i think it will not be allowable.

but i m agree with accounting treatment.

jaygulani

jaygulani (Expert)
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05 June 2008 whever u have problem, call me are sms me on 09424515253. through chat we can solve problem. (I am account teacher since 20 years. So many my student get rank in CA Exams.) SUBJECT OF EMAIL SHOULD BE "ONLINE ACCOUNT STUDENT AVAILABLE"

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