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Help for tds entry

onett (Accountant) (24 Points)

05 April 2013

co. received Rs 17280 dt. 4 April2013 for the o\s balance of March2013 bill by neft after deducting 10% Tds (Rs 1920) by the kapoor sons. so what will the entry .

4th April 2013 Bank a\c Dr 17280

Tds 2012-13 Dr 1920 Or Tds 2013-14

To Kapoor & sons 19200.

Is this correct entry or we pass further entry in March 2013.

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14 Replies

Abhinay Kesanapalli (Articles asst.) (84 Points)
Replied 05 April 2013

you have to check in 26 AS and pass the entry. May be it relate to 2012-13 and to be passed as TDS 2012-13 only.

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Khushbu Jaiswal (CA Finalist) (528 Points)
Replied 05 April 2013

You must check 26AS and (In case it shows in F.Y.2012-13 i.e A.Y.2013-14) You should pass entry as follows:

1st entry (in F.Y.2012-13) on the transaction date mentioned in 26AS.

Kapoor & Sons A/c ----Dr.

TDS (F.Y.2012-13) A/c----Dr.

To Income A/c

2nd entry (in F.Y.2013-14) on payment date.

Bank A/c --------Dr.

To Kapoor & Sons A/c.

(In case it shows in F.Y.2013-14 i.e. A.Y.2014-15), You can pass entry in F.Y.13-14 as said by u.

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 05 April 2013

Originally posted by : onett
	co. received Rs 17280 dt. 4 April2013 for the o\s balance of March2013 bill by neft after deducting 10% Tds (Rs 1920) by the kapoor sons. so what will the entry . 4th April 2013 Bank a\c Dr 17280 Tds 2012-13 Dr 1920 Or Tds 2013-14 To Kapoor & sons 19200. Is this correct entry or we pass further entry in March 2013.

First You should check whether income is properly recognized in last year, there after you need to reconcile TDS credit shown in 26AS if you identified some differences in TDS receivable with 26 As

Note further, TDS entries related to 4th qtr will be updated after 15 May .

Abhinay Kesanapalli (Articles asst.) (84 Points)
Replied 06 April 2013

Hi Kumar Mukesh, here problem is not related to income recognition.When to book the TDS in 2012-13 or in 2013-14.

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 06 April 2013

TDS is related to last financial year 2012-13, and it should be booked in last year only. Otherwise your closing balance of customer ledger will never tally with customers books of account an on 31st March, 2013.

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Abhinay Kesanapalli (Articles asst.) (84 Points)
Replied 06 April 2013

Customer books it in the current year then?

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 06 April 2013

Originally posted by : Abhinay Kesanapalli
	Customer books it in the current year then?

Have you done reconciliation any time for knowing reasons for differences in customer ledger.

If not please do it, then after you can get my poiint

Abhinay Kesanapalli (Articles asst.) (84 Points)
Replied 06 April 2013

I can do reconciliation in my books, but i can't reconciliation in customer books.If customer is not booked what i can do in my books.

Khushbu Jaiswal (CA Finalist) (528 Points)
Replied 06 April 2013

As per my perception If TDS actually relates to F.Y.12-13 and neither booked by the deductor nor by the deductee then he may book the same in the F.Y.13-14 under "TDS F.Y.12-13 not claimed in last year" and can claim in the current year.

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 06 April 2013

Dear reconciliations always done with outsider books, presently you assume that to know/identify unclears entries causing closing balances, is not valid reconciliation

Please always remember this

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Abhinay Kesanapalli (Articles asst.) (84 Points)
Replied 06 April 2013

Kumar Mukesh I am also telling that only it is reconcilied with outsider books. If that outsider is not booked in the last year and booked in the current year..

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 06 April 2013

Originally posted by : Abhinay Kesanapalli
	Kumar Mukesh I am also telling that only it is reconcilied with outsider books. If that outsider is not booked in the last year and booked in the current year..

If outsider is not booked expenses in last its doent means that income is not accure in last year.

Yes TDS entry will be done in the year when customer actually deduct TDS.

In this there will be balance difference in closing balance at year end, however this difference will be knocked-off in next when customer booked as expenses

if you have you further query please cont me at +919999219030, presently replying your queries tooks so much productive time

Abhinay Kesanapalli (Articles asst.) (84 Points)
Replied 06 April 2013

In last reply only i have cleared specified that we are not talking about the recognition of Income. You are always talking about recognition of Income, first see the issue of the author and without seeing that ,your are giving unnecessaary replies which is not related to the topic and telling that we are wasting your productive time

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 06 April 2013

Originally posted by : onett
	co. received Rs 17280 dt. 4 April2013 for the o\s balance of March2013 bill by neft after deducting 10% Tds (Rs 1920) by the kapoor sons. so what will the entry . 4th April 2013 Bank a\c Dr 17280 Tds 2012-13 Dr 1920 Or Tds 2013-14 To Kapoor & sons 19200. Is this correct entry or we pass further entry in March 2013.