During the audit of a company i saw a case where the co. deduct tax and deposit it but later on they make reversal entry of same TDS amount and adjust the same with other equivalent amount. Is it possible?
Please Confirm.
Thanx in Advance
During the audit of a company i saw a case where the co. deduct tax and deposit it but later on they make reversal entry of same TDS amount and adjust the same with other equivalent amount. Is it possible?
Please Confirm.
Thanx in Advance
Dear Naveen,
There are no restriction of such reversal entry but deductor has to ensure that the adjustment is done with entry having TDS deduction:
1) under same section.
2) For same period
3) For same category of deductee (Company deductee/non company deductee)
rgds
Shaswat initial support private limited
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