02 August 2013
WE ARE DEDUCTING APPLICABLE TDS ON SALARY IN EQUAL MONTHLY INSTALMENTS FROM SALARY OF EMPLOYEES. NOW INSTEAD OF DEDUCTING FROM MONTHLY SALARY CAN WE ADJUST MONTHLY TDS AGAINST ANNUAL BENEFITS DUE BUT NOT RECEIVED FROM COMPANY BY PASSING ACCOUNT JOURNAL VOUCHER. Is there any adverse complication for doing this ?
02 August 2013
please understand salary structure of x co p ltd is basic + hra+ allowances+reimburshments+ LTA [which is payable on annual basis]
Here in above case instaed of deducting TDS from monthly salary i.e. basic+hra+allo+etc. we will pass accounting entry in books say Debit Prov. for LTA [due for payment] and cerdit to TDS salary account, on next month 7 we will make the payment of TDS to CG. No default in statutory liability, only internal accounting adjustments by which employee will get benefitted only by getting monthly excess take home salary.
03 August 2013
Your query says the employer paying the TDS on behalf of employee monthly and deducting on year end totally from employee against the annual benefits.
CAclubindia
