CA
104 Points
Joined February 2008
If any professional is maintaining books on Cash basis, but other party is maintaining books on accrual basis then it is the liability of that other person to book his expense on accrual basis and deduct TDS.
But professional who is maintaining books on cash basis has not received the amount, so he cannot take that amount as revenue to increase his income. Correspondingly, he should also not take credit of TDS deducted in that year in which amount has not been received.
TDS deducted will be carried forward to next year to be claimed in the year in which income is received.
While filling the return form where the detail of TDS deducted is to be fiiled, there are two seperate columns, one for TDS deducted and another for TDS claimed during the year. Write the full amount in TDS deducted column, and nil amount in TDS claimed column.
By this way TDS deducted will not be taken in that year, but will be available for credit in next year.