Income tax

You say that you paid TDS on expenses on Jan13.. so you can claim the expenses in FY 2012-13(Ay 13-14)

In fact you can pay TDS by the return filing due date to claim deduction of expenses.

What is the issue here?

Here Allowance or Disallowance of expenditure due to non compliance of T.D.S Returns arises for Income tax pupose. You need to show in your Profit and Loss account even though you don't deduct T.D.S. Prior period item as per AS-5 is omission or error made in previous year and accounted during current financial year, Hence no matter of AS-5 Prevails, Thank you.

dear madam

in case ay 2013-14 tax audit due date is 30.9.13 but tds filling date is 20.1.14( tds expenses disallowed on ay 2013-14) i will cliam prior period expenses on ay 2014-15?

If you paid the TDS after the return filing due date, you can claim the expenses in the year the TDS was actually paid (Ay 2014-15). This will be allowable expenditure as per Income tax act.

In AY 2013-14 you will have to debit the expenses to P & L a/c as Nuli has explained above and then disallow them in the return (while computing tax). In Ay 2014-15 You cannot debit them again to P& L a/c. Only claim then in the return.

P&L Account- In P&L same is to be debited in the year in which expenses is actually incurred irrespective of the date of payment of TDS thereon.

For Income tax purpose: Expenses will be allowed in same FY in which it incurs only if TDS is deducted & paid before due date of filing ITR of that FY. If TDS is paid after due date of filing ITR, same will be allowed in FY in which same is actually paid. Suppose you deduct TDS in Jan-14 & paid the same in May-14, expenses will be allowed in FY 2013-14 itself. And if you pay TDS in Dec-14, same will be allowed in FY 2014-15