Reversal of TDS Liability of 31.3.2010.

Nayan Dutta (CA and ICWA) (73 Points)

20 May 2010  

Following is the facts of the case:

A liability has been wrongly created on 31.3.2010 and TDS has also been deducted on that amount. Accounts has already been finalised and approved in board and statutory audit has already been completed and report submitted.

Query:

Is it possible to reverse the liability alongwith the TDS liability and not deposite the TDS amount before 31.5.2010 on account of liability being wrongly created? Also consider the case from the point of statutory audit and tax audit.

Please advise.