Tds on provision for exp - sec 40 (a)(ia)

 

Dear Members,

We are in construction business and at the year end ( 31.03.2011) we have made provision for contractors bills based on the work completed, but in billed in  May - June '11.

Supposing we deduct and remit the TDS on provision now ( Aug '2011) & remit the challan as TDS for AY 2012-13, would it be  sufficient compliance of Sec 40 (a) (ia). 

This is becoz all that the section 40 (a)(ia) requires is TDS deduction and payment before filing the return, which is complied with.

Grateful if some members could clarify the position.

 

Thanks

Sadanand

 

 

 

Replies (2)

But then while uploading the TDS return in form 26Q for 1st qtr of FY 11-12, which date will you show as the date of credit ? 31/03/2011 ?

you pay interest under section 201(1A) and remit the TDS

 

regards,

If you can book entry on 31.03.11 only than you can avoid disallowance under sec 40 a(i) after depositing amount on aug or evan sep.

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