I understand from on line 26AS that the party to which I extended service in the FY 2010-2011 promptly deducted tax at source at the rate of 10% but I have not received my part of the payment. I hope they will be paying it to me during FY 2011 - 2012? How should I account this TDS and the payment ( hope to be received) ?
bills are accounted in previous year so TDS has been deducted in previous year,
you are creditor in their books for the invoice value less TDS deducted, whereas in your books they are debtors less TDS deducted ( TDS would be deducted aginast payment receivable)
you have to book the bills in previos year turnover and TDS too, current year payments against those bills does not make any change to taxability.
You have to account TDS and Bill in previous year and payment received (after deducting tds) will be accounted after receipt.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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