ASHISH SINGH ADHIKARI (student) (40 Points)
06 September 2021Hi Sir/Mam,
We have raised a invoice of professional service of 50000+ in FY 2020-21, creditor didn't paid any amount and TDS also not showing in 26 as till Aug 2021.
Do we need to make a adjustment entry of TDS receivable or we will pass this entry when we TDS amount will apear on 26 AS.
JGM
(Knowledge Sharer)
(443 Points)
Replied 06 September 2021
You can call up the Finance Team of your creditor and check whether they have deducted any tax on provision basis or not? Sometimes, such misses are identified in audit and thereafter the TDS is done. In the instant case, since you will considering the income to be part of FY 2020-21, in my view, you need to account for the TDS. If the creditor does not deduct tax then you can reverse the entry in subsequent year
CAclubindia
