Sandeep (Self Employed) (125 Points)
19 September 2012Please help with entries for the following scenario in Tally -
1. Invoice raised on customer ABC on 25th March 2012
2. Payment recieved after deduction of TDS on 10th April 2012
Do we need to create provision for TDS to be deducted on outstanding amount in March? What ledgers (and under what group) and accounting entries need to be made for the same?
Regards
Sandeep
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 19 September 2012
Yes, the following journal entry needs to be passed in FY 2011-12
Party A/c Dr. (100-X)
TDS receivable A/c Dr. X
To Income A/c 100
Sandeep
(Self Employed)
(125 Points)
Replied 19 September 2012
Thanks Sumit. Some clarifications -
1. I am passing a sales voucher entry for the invoice which also has the above entries.
2. The sales voucher would not have any entry to pass for TDS receivable.
3. In this case should I open a "Provision for TDS receivable" ledger or something similar? Which group should this be in ?
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 19 September 2012
In that case, a the folowing two entries may be passed, instead of the consolidated entry(as shown above):
1) Party A/c Dr. -----with full invoice amount
To Income A/c
2) TDS Receivable A/c Dr.----to be opened under head Current Assets
To Party A/c
Praveen Kumar Agarwal
(Accountant)
(180 Points)
Replied 20 September 2012
Sandeep
(Self Employed)
(125 Points)
Replied 20 September 2012
Praveen the nvoice is for services and not goods (should have clarified).
Sumit what about the entries in next fy when the payment is actually received?
Also if I credit the party account for TDS receivable won't that create a service tax liability in Tally in the current year? Instead of when the payment is actually received in April?
Regards
Sandeep
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 20 September 2012
At the time of receiving payment in next year
Bank A/c Dr.
To Party A/c
And Dear Sandeep, w.e.f 01-Jul-11, the service tax has become payable on due basis, so, in your case, the service tax liability arose in FY 2011-12 only,irrespective of the fact that the payment has been recevied in subsequent month.
Praveen Kumar Agarwal
(Accountant)
(180 Points)
Replied 20 September 2012
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