Treatment of TDS in case of receipt basis os accouting

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jalpa parekh (Querist)

18 July 2010 Hello all
can anyone plz tell me about a treatment of TDS to be made in case of CA firms own books of accouting in following situation:

Our firm is maintaining books on CASH basis of accouting. But some of our parties deduct TDs on prof fees on accrual basis in their books of accounts.This TDs is there in Form 26AS in our A/c. But receipts relating to this has been received by us in next year for whICH tds IS showing in current year's 26AS. What should be treatment of TDS for the same?

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

19 July 2010 According to me credit of TDS shall be taken as per Form 16A issued by the parties and income shall be taxable on the cash basis. As TDS can not be carry forward in the next year so we need to take the credit in the year of deduction.

jalpa parekh

jalpa parekh (Querist)

23 July 2010 thanx a lot SUDHANSHU g
but can u plz give me any legal base in which there is mentioned that we can not claim TDS next year. n we have to claim it in that year only?
bcz in that way there will always be problem in case of cash basis os accouting.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

26 July 2010 When we deposite TDS with Form 281 we always mention A.Y. on the top of the form and then deposite TDS in that A.Y. So when government check the TDS credit that is available for that Assessment year only. However if TDS deducted is more than tax liability then you can claim refund. But TDS can not be carry forward.

jalpa parekh

jalpa parekh (Querist)

27 July 2010 thanx but i stil dont agree sir.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

27 July 2010 Whether you agree or not that is not the case. Important thing is whether its correct or not. Sometimes we need to create logics. In case of rent when it is paid in advance TDS deducted on it can be carry forward when it accrues. There was a clarification on the same point from CBDT. But in other cases it is not carry forward. For more clarification go through Section 199 of Income Tax Act, 1961 and Rule 37BA of Rules.

jalpa parekh

jalpa parekh (Querist)

27 July 2010 ok sir i will surely go through it n i was not agree only because the logic told by you was not convinvcing. sorry for that n thts y i demanded some legal base.
i will go through sections sir.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

23 July 2013 The AO shall give credit of the TDS in the f.Y. 2013-14 which is not availed in the f.Y. 2012-13 provided the same is mentioned in the TDS column of ITR that the credit of only a part of the TDS has been availed in the A.Y. 2012-13.

https://www.caclubindia.com/experts/carry-forward-of-tds-credit-1376729.asp

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