ABC & Co. is Auditor of XYZ & Co. conducting Internal Audit for the F.Y. 2010-11.
XYZ & Co. is showing that credit balance of2 5,000 of ABC & Co. at the end of June, 2010 & which TDS has not been deducted.
At the end of the period i.e. 31st March, 2011 ABC & Co. having credit balance of30,000 (including previous balance of25,000) still outstanding in the books of XYZ & Co. & no such TDS has been deducted till now.
Represent in Accounting Format:
In the books of XYZ & Company
ABC & Company A/c
1.4.10 Balance b/d Nil
30.6.10 Audit Fees 25,000
31.3.11 Balance c/d 30,000 31.3.11 Audit Fees 5,000
Consider the above situation; tell me what amount of TDS & Interest (if any)
should have been deducted at the end of the period as per New rules of TDS?
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