hello frnds..
can any1 tel me wat if TDS Account is debited to P & L A/C instead of Current Liabilities??
Whether it will b disallowed & added back to income or is allowable expense...
hello frnds..
can any1 tel me wat if TDS Account is debited to P & L A/C instead of Current Liabilities??
Whether it will b disallowed & added back to income or is allowable expense...
You mean, you were liable to deduct TDS from payment made to someone and have not deducted TDS and not created a liability?
It depends on the nature of payment, the purpose.
agree with mihir TDS is your liablity ,also give TDS certificate to whom the TDS is deducted
yes i was liable for deducting tds n instead of showing tds under current liab i debited to p and l a/c..
Hi..first of all ur accounting is wrong..even if u forgot to show TDS as current liablity then u should have shown it as income rather than debiting to P&L a/c.
Now you have to reverse the entry & show it as current liability..
& for sure your income is gonna increase due to this n u have to pay income tax to that extent..I hope this will clarify your problem..
First of all the query seems to be incorrect. When you deduct TDS it is your liability i. e. it has credit balance. If you transfer the same to P & L A/c then it would credited to the P & L A/c and not debited. So the query itself is not clear to respond.
If you wish to say that the TDS other assessees have deducted has been debited to the P & L A/c then the TDS would not be an allowable expenses.
Also the TDS you have bymistakely credited to the P & L A/c needs to be paid and so will revese in the next year and hence it would be deducted from income this year and not allowable next year when you debit on payment of TDS.
Thanx Frnds.....
Dear Deepak,
Your query seems to be re;ating to adjustment made for TDS paid which was not earlier deducted by the client while making payment and there is no further transaction or way to recover the TDS. So client must have paid the TDS and debited the standing amount of TDS to P&L. Exp-: Bill amount Rs. Lac Payment made Rs. 1 lac so to save whole expenditure to get disallowed client can make payment of TDS as rs 1 lac/0.9 - Rs. 1 lac ie. 11111. Now this amount will stand in tds account to nulify this amount it is being debioted to P&l A/C.
2nd case could be that the payment of INterest i.e. Late payment of TDS with interest as interes is disallowed.
Hope others will agree with this point.
intt on tds default can be debited in profit & loss a/c or not
plz give ans with reasons? it's urgent
There is no specific sec. gorverning disallowance of interest on TDS but there are various judgements that disallow such expenditure, stating that income tax itself is not allowed under Sec.40(a)(ii) of the Act, hence in no way the same can the interest be allowed.
Your are not logged in . Please login to post replies
Click here to Login / Register
Malhotra Rajesh & Associates
New Delhi
B.Com
View Details
Abic and Mani Chartered Accountants
Kottayam
B.Com
View Details
CCI
Pro
India's largest network for
finance professionals