CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

TDS Deduction


Vipul Acharya (Account Officer)     24 May 2020

Vipul Acharya
Account Officer 
 10 likes  374 points

| My Other Post

I received a Invoice Dated :- 18.05.20
of AMC contract period is from Feb-20 to Jul-20

So i have to make provision in FY 2019-20 proportionately but in this whether to be deducted in the m/o Mar-20 or in May-20

If to be deducted whether Proportionately or in full

kindly guide

avater

jashwanth (vijayawada)     24 May 2020

jashwanth
vijayawada 
 55 likes  398 points

View Profile | My Other Post

First allocate the amount proportionately, then determine Tds applicability based on the amount.

1 Like

Vipul Acharya (Account Officer)     25 May 2020

Vipul Acharya
Account Officer 
 10 likes  374 points

View Profile | My Other Post

But my CA advised to book TDS in the m/o march -20 with full amount

avater

Pradeep Gupta (Accounts Manager)     25 May 2020

Pradeep Gupta
Accounts Manager 
 16 likes  293 points

View Profile | My Other Post

You need to deduct TDS on full amount excluding tax.
Further, Expenses will be booked for 2 month i.e. Feb & Mar and remaining 4 months expenses will be debited to prepaid expenses so that it can be expensed off in the next year which it pertains to.

Vipul Acharya (Account Officer)     25 May 2020

Vipul Acharya
Account Officer 
 10 likes  374 points

View Profile | My Other Post

But Invoice is of May -20, then how we can make prepaid expense of remaining amount

avater

CA ABHAY GUPTA (Practice)     25 May 2020

CA ABHAY GUPTA
Practice 
 169 likes  1918 points

View Profile | My Other Post

A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future.

in the given case payment is not made in advance thus it is not a case of prepaid expense.

secondly the bill dated May, 2020 since expenses belongs to previous year also thus expense pertaining to feb and March need to be booked in that particular month else expenses will not be allowed. TDS need to be deducted proportionally as expenses booked meaning tds for the month of feb and march to be deducted in feb and march and to be paid.

avater

Asha Kanta Sharma (Manager - Finance & Accounts)     26 May 2020

Asha Kanta Sharma
Manager - Finance & Accounts 
 103 likes  5127 points

View Profile | My Other Post

TDS needs to be deducted in the month of March itself.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading

Popular Discussion


view more »



Trending Tags
newgstreturn
tds
Info Technology
Excise
Service Tax
corporate law
income tax
taxpayers
aatmanirbhar bharat
unified portal
rbi
ca
icsi
law
Union Budget
exams
ca exams may 2020
gstr 9
csr
itr
icai
epfo
gst council meeting

FM by Grant Thornton    |    x