Is there is necessity to make provision of TDS while making of expense provision.
example- if provision for professional fees, is there is need of TDS provision & TDS to be paid in Financial year.
Kindly reply.
Is there is necessity to make provision of TDS while making of expense provision.
example- if provision for professional fees, is there is need of TDS provision & TDS to be paid in Financial year.
Kindly reply.
THERE IS NO RULE TO MAKE PROVISION FOR T.D.S
EVEN IF U MADE NOT ALLOWED AS DEDUCTION IN BOOKS
T.D.S HAS TO BE PAID AT THE TIME OF CREDIT OF SUSPENSE A/C OR PAYEE A/C
It solely depends upon the mentod of accounting followed by the assessee. If you are following mercantile system of accounting then it is mandatory to deduct tax at source at the time of credit because as per relevant sections relating to TDS it says TDS shud be made at the time of credit or paymetn whichever is earlier. As you are making the provision in which case credit is earlier so TDS shud be made. If you do make TDS then you would be liable for penalty.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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