Tds on provisions

TDS 792 views 2 replies

Hi,

Is TDS applicable for creating provision in the Book of accounts for the purpose of preparing MIS and proper allocation of cost to different cost center monthlly.

For Eg.

31.10.2012

Professional Fees- Consultancy             200000/-

Professional Fess-Technical                   300000/-

Professional Fess-HR                               150000/-

              Cr Adhoc Provision for Expenses A/c             650000/-

 

1.11.2012

Adhoc Provision for Expenses A/c             650000/-

                              Cr Professional Fees- Consultancy             200000/-

                              Cr Professional Fess-Technical                   300000/-

                              Cr Professional Fess-HR                               150000/-

               Meanwhile booking of expenses will be done when bill reaches us subsequently and TDS will be remmited in the next month.

 

 

 

 
 
 
Replies (2)

Yes TDS is applicable for provision in the books, else expenses on which TDS is not deducted will be disallowed.

it is fine in the middle of the year, you should ensure that all entires for the month of March, should be deducted and paid in time

 

It hardly create any issue if it is in the middle of the year but if it is for the month of March then TDS should be deducted on the provisions and make sure that while filing TDS return such entries will be flag as book entry.


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