TDS On WCT

[Mukund Honkan]

We have opted for composite scheme under MVAT(Maharashtra). We have accounted certain Invoices raised on client in the year 2010-11, the said amount is received in the year 2011-12 after deducting TDS on WCT.  Please let me know in which year  we should account for TDS on WCT corresponding to the said invoice regards, Mukund M Honkan

[Vivek Harsh]

 

If your query is restricted to accounting purpopses and not with regard to return filing issues than you should account your TDS for 10-11.  Are your accounts finalized  ? Are you facing return filing problem? kindly explain your position. 

[Mukund Honkan]

Thanks for feedback. As per law, in which year  we should consider thesame in VAT return regards, Mukund M Honkan

AI Summary

TDS on WCT should be accounted in the year of the underlying invoices for accounting purposes; VAT return timing unclear. The issue is whether TDS on WCT deducted at payment received in a later year should be accounted in the earlier year when invoices were raised under the composite MVAT scheme. The respondent advised that, for accounting purposes, the TDS should be recognised in the earlier year of the invoices; the taxpayer then queried the correct year for reporting the TDS in the VAT return, which remained unresolved in the discussion.