Rahul (.) (303 Points)
13 June 2011Dear Friends,
I need to pay professional fees say :10000 Rs to XYZ . Do I need to make provision for TDS while making Provision for professional fees itself OR deduct at the time of payment only.
If I need to make provision for TDS what is the entry.
Please help
vipul patel
(Ahmedabad)
(320 Points)
Replied 13 June 2011
Rahul
(.)
(303 Points)
Replied 13 June 2011
Thanks... Its a company.... I want know is not what u have answered but whether we need to make provision for TDS at the time of making provision for professional fees?
If yes what is the entry?
naga kiran kumar
(Articles Completed)
(78 Points)
Replied 13 June 2011
The relevant T.D.S provision being said by Vipul, there is no need to make a provision for T.D.S if the amount paid/credited or likely to be paid/credited does not exceed Rs.30000 (w.e.f. 01-07-2010)
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 13 June 2011
yes on rupees 100000 tds will be deducted
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 13 June 2011
entry for tds will be
xyz ac. -- - - - - -- - - - - dr.
to tds payable
valji
(Accounts manager-MBA)
(2150 Points)
Replied 13 June 2011
YES TDS WILL DEDUCTED @ 10% on professional fees under sec 194j
V RAGHAVENDRA
(C.A. Final Student)
(62 Points)
Replied 13 June 2011
Dear Friend, Tds is liable to be deducted at the time of payment or credit whichever is earlier.
When u make the provision for the profession fees, it amounts to credit and hence tds is liable to be deducted at the time of making the provision itself.
The entry for the same will be
Profession fees a/c Dr 100000
To Profession Fees payable a/c 90000
To Tds on profession Fees payable 10000
CA Devender Chauhan
(Group Financial Accountant)
(1526 Points)
Replied 13 June 2011
| Originally posted by : V RAGHAVENDRA | ||
 |
Dear Friend, Tds is liable to be deducted at the time of payment or credit whichever is earlier. When u make the provision for the profession fees, it amounts to credit and hence tds is liable to be deducted at the time of making the provision itself. The entry for the same will be Profession fees a/c Dr 100000 To Profession Fees payable a/c 90000 To Tds on profession Fees payable 10000 |
 |
Ravindra kumar
(student)
(87 Points)
Replied 13 June 2011
If the Professional & technical fees amount is exceed 30,000/- during the financial year accordace with technical & professinal fees under sec 194J, TDS to be deducted @ 10%.
The entry will be------------
Professional fees a/c Dr. 1,00,000.00
Professional fees payable a/c 90,000.00
TDS payable a/c 10,000.00
(Being professional fees payable for the month............................)
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 14 June 2011
| Originally posted by : V RAGHAVENDRA | ||
|
|
Dear Friend, Tds is liable to be deducted at the time of payment or credit whichever is earlier. When u make the provision for the profession fees, it amounts to credit and hence tds is liable to be deducted at the time of making the provision itself. The entry for the same will be Profession fees a/c Dr 100000 To Profession Fees payable a/c 90000 To Tds on profession Fees payable 10000 |
|
Bhushan
(CA Final Student)
(21 Points)
Replied 15 June 2011
Raghavendra is correct. TDS has to be deducted on professional charges though you have passed the provisional entry provided the prof. charges exceeds Rs. 30,000/-.
CAclubindia
