TDS on year end provisional entry

yes, it is necessary to deduct TDS on provisional expenses

Dear William

Yess. TDS is reqd. to be deducted on provisions. The relevant sections(such as 194C, 194H, 194I, 194J etc) specifies that the tax is to be deducted at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. Further, explanations in these sections specifies that any such sum is credited to any account, whether called "Suspense Account" or by any other name, in the books of accounts of person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of the relevant section shall apply accordingly (generall explanation 2)

YES IT IS NECESSARY

yes ,it is necessary,otherwise expenses are not allowed

Tell Me what would be the book entry in this case and what will be the treatment when the bill comes in April say, and the amount of the bill differs from the provision you made.

Yes Its mandatory.

YES IT IS NECESSARY

yes its required

we  also request to all

what would be journal entry for Provision ?

Originally posted by : Gaurav Rastogi
	Tell Me what would be the book entry in this case and what will be the treatment when the bill comes in April say, and the amount of the bill differs from the provision you made.

Differ amount is charged in current year expense (in case excess expenses than provision made) or as an Income (in case short expenses than provision made- reversal of short expense charged). Both the entry will come under current year financials. In situation provision of AS-4 also be considered.

Dear Pawan, i think you have to pass the entry in the month of March and the TDS on balance amount with interest of one month needs to paid.

yes it is compulsory entry of financial year

dear mr rustogi. though the provisional amount may be different from actual amount. it no matters. we need to comply the income tax requirements.  and the requirements says we need to deduct the tds on 31 march though on provisional amount.