Exp paid on behalf of company

This query is : Resolved

RAKESH (Querist)
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13 August 2021 Suppose X paid the profession fees on behalf of company y to Mr z for Rs 11800(10000 basic and 18% as IGst ).
Mr x failed to deduct the tds .now the question is that while making reimbursement to x .we have passed this following entry.

Profession fees A/c Dr. 10000
Igst A/c. Dr. 1800
To. Z. 10800
To tds payable. 1000

Z A/c. Dr 10800
To X A/c. 10800

What about Rs 1000 which is paid extra by X to z. Who will collect Rs 1000 fromZ. And rs 1000 is less payable to X is right .pls resolve

Regard

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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13 August 2021 Here X has made payment to Z on behalf of you (Y) but the expense is being accounted by you:
1) TDS credit should be given to Z in your books
2) Excess payment of 1k can be refunded to X by Z