TDS on Advance payment to Contractor
This query is : Resolved
17 October 2019
I paid a sum of Rs 100000/- to my contractor as advance. But not deducted TDS.
Wanted to rectify error how much TDS to be deducted and deposited and what will be the accounting entries passed.
Please suggest
Wanted to rectify error how much TDS to be deducted and deposited and what will be the accounting entries passed.
Please suggest
17 October 2019
Can you elaborate your query with more details....
18 October 2019
TDS to be deducted at the time of payment or accounting which ever earlier. As per section 194 (c) if single contract is more than Rs.30000/- or annual transactions exceeds Rs.1,00,000/-. Hence in the above case,TDS to be deducted at the time of making payment. The rate of deduction is 1% for individual, 2% for firm and corporates. Depending on person TDS to be deducted.
Accounting entry - If TDS deducted at the time of making payment.
Debit - Contractor ( Gross amount)
TDS Payable
Bank account ( Net of TDS).
As the TDS not deducted at the time of making payment, you have to pay TDS now and the entry for the same is given below
Debit contractor - ( For TDS amount)
Credit TDS payable
Entry for TDS payment is
Debit TDS payable
Credit Bank
The TDS paid for Rs.1,00,000 is to be recovered in subsequent payment. The due date of making TDS payment is 7th of succeeding month. If the advance was settled in the last month, TDS to be paid along with applicable interest from 08.10.19 to till the date of making payment
Accounting entry - If TDS deducted at the time of making payment.
Debit - Contractor ( Gross amount)
TDS Payable
Bank account ( Net of TDS).
As the TDS not deducted at the time of making payment, you have to pay TDS now and the entry for the same is given below
Debit contractor - ( For TDS amount)
Credit TDS payable
Entry for TDS payment is
Debit TDS payable
Credit Bank
The TDS paid for Rs.1,00,000 is to be recovered in subsequent payment. The due date of making TDS payment is 7th of succeeding month. If the advance was settled in the last month, TDS to be paid along with applicable interest from 08.10.19 to till the date of making payment
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- RCM INVOICING FROM NOV-2024
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
