Hi
What is accounting treatment in following situation? Please explain me .
Suppose Mr A is liable for conducting Tax Audit ( F Y 06-07) . He paid Rs 20000/- as interest on unsecured loan to Mr X . But he has not deducted TDS on such transaction. After 3 years ( In F Y 08-09) Mr A had to face scrutiny. ITO noted that & Mr. A had to deposit such TDS.
Mr X is individual party . He had filed his return before arising scrutiny. Also he got his other refund .
In such situation I need your help :-
What is accounting treatment of such transaction in the books of both party. Also In which year it should be entered.
How can Mr X claim for such refund ?
Thanks
Pankaj Sonar
CAclubindia
