Dear all,
As per Income tax act 1961, if TDS did not deducted for deductable transaction the company can be termed to be Assessee in Default and Department has accrued obligation over collection of TDS ammount from company in which defaulted in deduction, since the non deducted ammount termed to be accrued liability to the company exhisted in the reporting period same needs to be accounted for liability, if the company did not accounted for liability whether Statutory Auditor needs to Qualify in report of just emphasis is enough??
The transaction was company paid advance to contractor in which defaulted in deduction of TDS under Income tax act 1961
my contention is that if company did not deducted TDS company termed to be assessee in default and department has 100% obligation towards collection from company- collection can be termed after receiving notice but as such it is accrued liability exhisted as on balance sheet date if company did not provide for liability as per companies act accrual system maintenance can be termed since the transacted amount is matreial
please sugest the compliance needs to be qualified in Statutory Auditors report or no such comment required or just emphasis is enough.
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