Tds on provisions

Lokesh Rao (sr associate ) (45 Points)

31 October 2012  

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.