PROVISION OF COMMISSION IN F-16A HOW TO PASS ENTRY IN A/C.

This query is : Resolved

Maulin Mistry (Querist)
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25 September 2010 CAN ANY ONE SUGGEST ME HOW TO MAKE ENTRY IN BELOW SITUATION..?
ITS VERY URGENT TO FILE I.T. RETURN....
Q. TDS DEDUCTOR GIVE F-16A TO MY CLIENT, &
BESIDES REGULAR ENTRIES DURING WHOLE YEAR
IN LAST ON 31.3.2010 HE MAKE ENTRY OF PROVISIONAL COMMISSION & DEDUCT TDS
BUT DO NOT GIVE CREDIT IN MY CLIENT'S REGULAR ACCOUNT STATEMENT.
TDS DEDUCTOR MAKE ANOTHER PROVISION ACCOUNT BY MY CLIENTS NAME & GIVE CREDIT TO THIS ACCOUNT STATEMENT.
ALSO, HE GIVE CREDIT IN MY CLIENT'S REGULAR ACCOUNT IN NEXT YEAR....
PLEASE... TELL ME HOW...CAN I CLAIM FOR TDS DEDUCTED & HOW CAN I PASS JOURNAL ENTRY IN MY CLIENT'S ACCOUNT..

shakuntala chhangani

shakuntala chhangani (Expert)
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26 September 2010 Hi Maulin,U should not be concerned with how the other party passes the entry in his books of accounts. since he issues form 16A to ur client, it is more than sufficient. tell ur client to pass the following entry :
Other party A/c Dr. xx
TDS a/c Dr. xx
To commission A/c xx
since it is ur client's current year's income, he needs to pass the entry now.
Regards, CA Shakuntala Chhangani

Kishore Kumar Pahuja

Kishore Kumar Pahuja (Expert)
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26 September 2010 Maulin, I am in full agreemnt wiht Shakuntala. If you really want to replicate the entreis in your books you could also oope two acocunts in your books and pass entreis as per him, but the income has to be considered in the year in which he is issuing the TDS Certificate.

To be more simple the method suggested by Shakuntala is correct way of doing things.

CA Kishore Kumar Pahuja

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