TDS on March month Provision

CA ABHAY GUPTA

Practice

3235 Points Posted on 26 April 2021

Yes else expense claim will be 30% disallowed.

TDS sections says payment or credit whichever is earlier.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 26 April 2021

Yes, TDS should be deducted otherwise 30% will be disallowed

Prathyusha Varma

ArticleShip

393 Points Posted on 26 April 2021

Payment or credit which is earlier but what if we don't know payee ?

and should TDS amount paybale to be shown less from provison amount ?

eg. provison 100 tds 10 rupees

what is the entry?

Expense 100 dr
To expense payable 90 cr
To TDS payable 10

is above correct ?

CA ABHAY GUPTA

Practice

3235 Points Posted on 26 April 2021

Yes above mentioned entry is correct, you need to deposit Rs 10 on or before 30th April

knowledge of party required while filing TDS Return which one need to file for march quarter on or before 31st May, hope you will get name and PAN of party for which provision was made on 31.03

Prathyusha Varma

ArticleShip

393 Points Posted on 26 April 2021

What if, in case we don't know party ?

CA ABHAY GUPTA

Practice

3235 Points Posted on 26 April 2021

Then how can you justify your expenditure?

Prathyusha Varma

ArticleShip

393 Points Posted on 26 April 2021

I'm uncertain about amount to be provisioned, just one my department asked me to provide provision

CA ABHAY GUPTA

Practice

3235 Points Posted on 26 April 2021

Just make provision for March if things happened then ok if not then reverse the entry in month of May

Prathyusha Varma

ArticleShip

393 Points Posted on 26 April 2021

Okay Abhay,

One more question sorry !

We have made entry as below:

Provison expemse dr100
To Expense Payable 100

Now we are receiving invoices with March date, Should the TDS on them to be made before 30th April 2021 or 7th May 2021 ?