i am doing the audit of a ltd. company. Query is: In the year 2001-02 Rs. 3 crores borrowed by the company for the purchase of a land. On the due date payment of loan has not been made so loan giving company filed a suit against borrower's company and court orders the company to pay Rs. 10 crore. As per order company made a payment of Rs.10 crore without deducting TDS. Should company have deducted the TDS and also now company is saying that we will increase the value of land from Rs.3 crore to 10 crore because we have made excess payment. Tell me: Is intention of company correct with referance to AS 26 and also consider the TDS issue? If company is wrong then tell me the correct accounting treatement
CAclubindia
