Hello All,
I have got one query regarding deduction of tds in cash accounting system
If an assessee is following cash accounting system, he receives a bill from contractor on 25.03.2010 for which he will make payment in april 2010
on the above bill the assessee deducted tds on the basis of payment or credit whichever is earlier and considered the above bill as expenditure in the month of april on cash accounting system
my question is in which year the expenditure will be allowed whether in 31.03.2010 accounts or 31.03.2011 accounts?
thanks in advance
CAclubindia
