Accounting for TDS on closing

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Ashwani Goel (Querist)
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26 May 2010 After closing on 31-03-10, I received payment from my debtor on 15/05/10 in respect of Invoice raised in FY 09-10,after TDS. I have already opened a seperate ledger for "TDS FY 09-10" in books. I will receive TDS certificate from customer for FY 09-10 in respect of this TDS. If I pass this receipt entry in FY 10-11 and show TDS receivable in "TDS FY 09-10" a/c, how will I claim correct TDS for ITR for FY 09-10, as balance in this account on 31st march 2010 will not include TDS receivable after 31st mar 2010.

Rahul Vora

Rahul Vora (Expert)
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27 May 2010 At the end of every financial year, you have to account for the TDS Receivable on 31st March by passing the following JV,
TDS Receivable A/c Dr
To Debtor A/c
By this entry the TDS Receivable for that particular year will be accounted for and the Debtor's A/c will show balance which is receivable from Debtor after TDS.
For e.g.,
Rs.100/- is receivable from A including Rs.10/- TDS. So you will pass a JV,
TDS Receivable A/c Dr Rs.10/-
To A Rs.10/-
This will reduce A's balance to Rs.90/- which will be actually received in next year. And your TDS A/c is already showing the balance which you have to claim

Ashwani Goel

Ashwani Goel (Querist)
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27 May 2010 Thanks for the reply.

On 31st mar 10 I will not be knowing the TDS receivable amount as the receipt has come in May 10. So are u suggesting for passing back dated entry. If it so, in case my book are closed how should I deal with that.

Secondly, suppose my books are not closed, after passing TDS rece entry on 31 st Mar 10 (which I will be knowing in May 10) would impact my Service tax liblilty where I have charged service tax on my bill on the amount of TDS rece entry and I must have filed my service tax return. How should I deal with it. Please explain in detail.

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