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TMI BlogProvision - Espense - TDS Challan A.Y.X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir, Please give your opinion on this. FY 2012-13 AY 2013-14 A company. An year end provision (Mar 31.2013) was kept for Professional fees as per mercantile system of accounting to get true and fair view of PL. ₹ 100/-. Entry Professional fee (Expense GL) Dr 100 Outstanding Liability (Liability Balance sheet GL) Cr 100 Expense was duly disallowed for AY 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -14 under section 40a(i)(a). FY 2013-14 AY 2014-15 Professional of company produced bill only on Dec 2013 for same ₹ 100/- Entry passed Outstanding liability (Liability GL) Dr100 Vendor Cr 90 TDS Cr 10 This TDS was paid to Government in next month before due date of 7 th jan 2014. Since TDS ought to be deducted on 31.03.2013, Interest for the period from 31.03.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 to 07.01.2014 paid over and above ₹ 10 TDS. This TDS challan for ₹ 10 is made in AY 2014-15. Since provision is disallowed in AY 2013-14, and since TDS is paid duly in FY 2013-14, this expense of ₹ 100 is claimed in AY 2014-15. Assessment by assessing officer for AY 2014-15 Assessing officer is not allowing ₹ 100 in AY 2014-15, because TDS challan is in AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014-15 and not AY 2013-14(i.e. Assessment year of provision booking). Assessing officer is asking to file correction statement of TDS. How can assessing officer tell like this? Provision was duly disallowed in AY 2013-14 Double deduction is not claimed. Bill is given by the professional only in Dec 13. TDS is paid in Jan 14 and return is duly filed. Income is booked by Profess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional in FY 2013-14 (AY 2014-15). TDS is now correctly matching in the 26AS of that professional. If correction statement is filed, mismatch will occur in the 26AS of professional. Question Is there any provision in the Income tax Act, that TDS challan should have been paid in AY 2013-14 and not AY 2014-15 and then only deduction can be claimed? Section 40(a) is saying that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein respect of any such sum, where any tax has been deducted in any subsequent year, such sum shall be allowed as deduction in computing the income of the previous year in which such tax has been paid. Regards, Siva - Reply By Ganeshan Kalyani - The Reply = In my view the mentioning correct assessment year is very important to claim the credit in that previous year. You may write a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... request to income tax department to correct the assessment year. - Reply By Siva Rama - The Reply = Dear sir, Thanks a lot for your reply. Actually the situation is not as simple as mentioned in the question. In the above question, I tried to mention the issue in simple way only. For Service provided every month, the professional charge ₹ 100. He has submitted the bill for Apr 12 - F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eb 13 - ₹ 1100 (100*11) during FY 12-13. Professional has not submitted the bill for Mar 13 till the end of Mar 13. Hence the company passed provision for ₹ 100/- for Mar 13 on 31.03.2013 to enable true and fair view of PL. For Mar 13 to Nov 13, the professional submiited bill - ₹ 900 (100*9) on Dec 2013. i,e, For Mar 13 ₹ 100 , For Apr 13 - Nov 13 - ₹ 800/- So whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le booking invoice - Rs 900, entry was passed as Professional fee Dr 800 Outstanding Liability Dr 100 To Vendor Cr 810 To TDS Cr 90 This whole ₹ 90 is paid as one challan ( AY 14-15.) Thus this ₹ 90 TDS includes ₹ 10 (being TDS of Prov for Mar 13 ) So now it is not possible to file correction statement (because same challan includes 2 Assessment Years) Section 40a(i)(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) says the expense can claimed in the FY in which TDS is paid. We have provided full evidence to the assessing officer, the entries passed, the bills etc. There is no double deduction. AO never objected to that.He problem is only AY mentioned the challan. Kindly advise Regards, Siva - Reply By MARIAPPAN GOVINDARAJAN - The Reply = You may better consult a Chartered Accountant in practice. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Ganeshan Kalyani - The Reply = in my view you may pay the tax under correct AY and already paid tax can be adjusted against future liability of that financial year. Also you may intimate the authority about the step that you would be taking. - Provision - Espense - TDS Challan A.Y. - Query Started By: - Siva Rama Dated:- 16-1-2017 Income Tax - Got 4 Replies - Income Tax - Discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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