Tds

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Ankur Sachdeva (Querist)
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30 March 2012 Dear Experts plz consider the following case:
The company in which i am working has Rs 34055 Tds receivable as on 31.03.2011 which has been shown in their balance sheet under head current assets. The tax liability for that year(2010-11)came to Rs 11634. So there is refund of Rs. 22421 which has been received by company on 11-2-12. Now how TDS standing on 31.3.11 of Rs 34055 and Tax paid of Rs 11634 and Refund of Rs 22421 is to be adjusted in balance sheet as on 31.03.2012?
Thanx and Regards.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 March 2012 TDS Receivable will have a debit balance of Rs. 34,055/-

There will be a credit balance of Rs. 11,634 in Provision for Tax.

Entry at the time of receipt of refund:

Provision for Tax A/c Dr 11,634
To TDS Receivable 11,634

Bank A/c Dr. 22,421
To TDS Receivable 22,421