TDS not Deducted paid in TDS return

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This query is : Resolved

CS Pravin Yadav (Querist)

17 February 2011 Suppose i had not deducted TDS while making payments to my client, but i had paid it in TDS return even it has not deducted no such entries were passed by me!!

Payment entry

Mr.A a/c...Dr 10000
To, Cash/ bank 10000

"I had not deducted TDS on 10000
but a had paid it in TDS Return"
if he is not that paying then...

can I debit this excess paid TDS in P& L a/c
if yes what entries i need to pass????

CA Manikandan.A.V

CA Manikandan.A.V (Expert)

17 February 2011 Hello,

First of all there is no express provision in the Act for you to pay TDS without deducting it. In such a case the TDS you are paying will also be treated as payment made by you to such creditor. In your case you have to Debit such creditor even if you haven't deducted TDS from him. You better adjust the TDS with the next bill and pay it.

You should not treat TDS as an expense and debit to P&L, in which case it will be disallowed.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

17 February 2011 since you have already showed the party details (deductee details) in your etds return, you have no choice but to ask the party to pay it back to you.

or lateron you may have to write it off.

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