How to ,make entry
This query is : Resolved
09 April 2012
hai,
actualy income is booked in the fy 2010-2011. tds also paid in that year. but amount recived for this invoice in the month of sep-11. by mistakly we pay tax on this amount again. double taxation is done. but know i want to be adjust this amount to remaing tax payable amount and how can i make adjustment entry for this mistake and is it passible to adjust or can i made refund. plz help me
journal entry also tell me .
thanks
actualy income is booked in the fy 2010-2011. tds also paid in that year. but amount recived for this invoice in the month of sep-11. by mistakly we pay tax on this amount again. double taxation is done. but know i want to be adjust this amount to remaing tax payable amount and how can i make adjustment entry for this mistake and is it passible to adjust or can i made refund. plz help me
journal entry also tell me .
thanks
09 April 2012
if you have booked the income then other party will dedcut the TDS,
How come you have paid the TDS to govt????
How come you have paid the TDS to govt????
09 April 2012
sorry, actualy we have 2 companeys both are services companeys. ex: 1 companey is FPS and another is ISS. FPS is rised to invoice to ISS in the year 2010-2011. income is booked in the company FPS. invoice rised to ISS. ISS is deducted TDS and deposited in the year 2010-2011. but amount recived in the month of sep-11. again i deducted and paid TDS from ISS for this invoice. actualy am a accountent to both companeys thats y i made a mistak plz can u help me
09 April 2012
You can provide form 16A, on the basis of which claim of tds can be made in current year.
09 April 2012
after providing form16A,
can i claim as refund in this year 2011-2012. if its posible how can i refund it? after providing form 16A ?
can i claim as refund in this year 2011-2012. if its posible how can i refund it? after providing form 16A ?
09 April 2012
how can i made journal entry for this excess tds payment. plz
28 July 2024
To address the issue of double TDS payment and manage it correctly in your accounting records, follow these steps:
### **1. Identifying the Issue**
You have made a TDS payment twice for the same income:
- **Original TDS Deducted:** In FY 2010-2011, TDS was deducted and deposited by ISS.
- **Duplicate TDS Payment:** In FY 2011-2012, TDS was again deducted and paid by ISS on the same invoice.
### **2. Journal Entry for Double TDS Payment**
You need to adjust your books to account for the excess TDS payment. Here’s how you can handle this:
**For FPS (Income Booked):**
- **No action needed for FPS** since the TDS was correctly deducted and deposited in the previous year (2010-2011). Ensure that the income and TDS were correctly accounted for in FPS's records for that fiscal year.
**For ISS (Double TDS Payment):**
1. **Correcting the Excess TDS Payment:**
**Entry for Excess TDS Payment:**
- **Debit:** TDS Receivable/Refund Account (for the excess amount)
- **Credit:** Bank Account (for the actual excess payment made)
**Example Journal Entry:**
| Date | Account | Debit (₹) | Credit (₹) |
|------------|------------------------|-----------|------------|
| [Date] | TDS Receivable Account | [Excess Amount] | |
| [Date] | Bank Account | | [Excess Amount] |
This entry records the excess amount as receivable, assuming you will either get a refund or adjust it against future liabilities.
2. **Claiming Refund from the Tax Authorities:**
**Filing a Refund Claim:**
- **Prepare a Refund Claim:** You need to file a TDS refund claim with the Income Tax Department. Generally, this is done by filing an application for refund along with a revised TDS return for the relevant period.
- **Provide Form 16A:** Ensure that Form 16A is provided and reflects the correct TDS deductions. This document will be crucial when applying for a refund.
- **Submit the Claim:** File the refund claim through the Income Tax e-filing portal or manually as per the guidelines.
**Steps to Claim a Refund:**
- **Visit the Income Tax e-Filing Portal:** Go to [Income Tax e-Filing Portal](https://incometax.gov.in/).
- **Login:** Use your credentials to log in.
- **Navigate to Refund Request:** Find the section for refund requests or correction of TDS.
- **Provide Details:** Enter the required details, including the excess TDS payment and Form 16A.
- **Submit Application:** Follow the instructions to submit your refund claim.
3. **Adjusting TDS in Future Returns:**
- **Future Returns Adjustment:** If a refund is not possible, adjust the excess TDS payment against future TDS liabilities of ISS. This can be done by reflecting the excess amount in the TDS return for the subsequent period.
### **Summary**
1. **Record the Excess Payment:**
- Make a journal entry to reflect the excess TDS payment.
2. **Claim a Refund:**
- File a refund claim with the Income Tax Department, providing necessary documents like Form 16A.
3. **Adjust Future Payments:**
- If unable to get a refund, adjust the excess amount against future TDS liabilities.
### **Important Notes:**
- **Ensure Accuracy:** Double-check all calculations and documentation.
- **Consult a Professional:** If needed, consult a tax professional or accountant to ensure compliance and proper handling of the refund process.
### **Additional Resources**
- **Income Tax India Website:** [Income Tax Department Portal](https://incometax.gov.in/)
- **TDS Refund Process:** [TDS Refund Claim Procedure](https://www.incometaxindia.gov.in/pages/tax-information-services.aspx)
Feel free to reach out if you need further clarification or assistance with the process!
### **1. Identifying the Issue**
You have made a TDS payment twice for the same income:
- **Original TDS Deducted:** In FY 2010-2011, TDS was deducted and deposited by ISS.
- **Duplicate TDS Payment:** In FY 2011-2012, TDS was again deducted and paid by ISS on the same invoice.
### **2. Journal Entry for Double TDS Payment**
You need to adjust your books to account for the excess TDS payment. Here’s how you can handle this:
**For FPS (Income Booked):**
- **No action needed for FPS** since the TDS was correctly deducted and deposited in the previous year (2010-2011). Ensure that the income and TDS were correctly accounted for in FPS's records for that fiscal year.
**For ISS (Double TDS Payment):**
1. **Correcting the Excess TDS Payment:**
**Entry for Excess TDS Payment:**
- **Debit:** TDS Receivable/Refund Account (for the excess amount)
- **Credit:** Bank Account (for the actual excess payment made)
**Example Journal Entry:**
| Date | Account | Debit (₹) | Credit (₹) |
|------------|------------------------|-----------|------------|
| [Date] | TDS Receivable Account | [Excess Amount] | |
| [Date] | Bank Account | | [Excess Amount] |
This entry records the excess amount as receivable, assuming you will either get a refund or adjust it against future liabilities.
2. **Claiming Refund from the Tax Authorities:**
**Filing a Refund Claim:**
- **Prepare a Refund Claim:** You need to file a TDS refund claim with the Income Tax Department. Generally, this is done by filing an application for refund along with a revised TDS return for the relevant period.
- **Provide Form 16A:** Ensure that Form 16A is provided and reflects the correct TDS deductions. This document will be crucial when applying for a refund.
- **Submit the Claim:** File the refund claim through the Income Tax e-filing portal or manually as per the guidelines.
**Steps to Claim a Refund:**
- **Visit the Income Tax e-Filing Portal:** Go to [Income Tax e-Filing Portal](https://incometax.gov.in/).
- **Login:** Use your credentials to log in.
- **Navigate to Refund Request:** Find the section for refund requests or correction of TDS.
- **Provide Details:** Enter the required details, including the excess TDS payment and Form 16A.
- **Submit Application:** Follow the instructions to submit your refund claim.
3. **Adjusting TDS in Future Returns:**
- **Future Returns Adjustment:** If a refund is not possible, adjust the excess TDS payment against future TDS liabilities of ISS. This can be done by reflecting the excess amount in the TDS return for the subsequent period.
### **Summary**
1. **Record the Excess Payment:**
- Make a journal entry to reflect the excess TDS payment.
2. **Claim a Refund:**
- File a refund claim with the Income Tax Department, providing necessary documents like Form 16A.
3. **Adjust Future Payments:**
- If unable to get a refund, adjust the excess amount against future TDS liabilities.
### **Important Notes:**
- **Ensure Accuracy:** Double-check all calculations and documentation.
- **Consult a Professional:** If needed, consult a tax professional or accountant to ensure compliance and proper handling of the refund process.
### **Additional Resources**
- **Income Tax India Website:** [Income Tax Department Portal](https://incometax.gov.in/)
- **TDS Refund Process:** [TDS Refund Claim Procedure](https://www.incometaxindia.gov.in/pages/tax-information-services.aspx)
Feel free to reach out if you need further clarification or assistance with the process!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Inventory of finished goods
- Sale of property furniture sale
- Filing of Form 10BB instead of Filing Form 10B
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Last year input claim shown in gstr9
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
