Hello
I am the partner in a small-sized LLP. I worked on a project with a client with full contract value 70L in FY 2024-25. Only 50% of the project was completed in FY2024-25 and the project was extended and still continuing. Accordingly, the client was invoiced 50% in FY 2024-25.
In my LLPs accounts, we consider invoice date as the timepoint when the income became actually due. As such, my calculated turnover for FY2024-25 is 35L.
My client just informed me that they are maintaining books by creating provisions for the entire contract value. So they have calculated and filed TDS on the entire 70L and my LLP's 26AS now show "Value credited" as 70L. They follow this system for all vendors, and are not willing to file any amended TDS return.
How do I reconcile these two systems when I am filing my returns?
In one place it was suggested, that I should file my turnover as 35L, leave a comment that "Client hass provisioned and this income will be realised this year" and carry forward TDS for the corresponding amount to next year. Is this the correct method?
Any other suggestion? Or concern?
CAclubindia
