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Tally entries

Appanna (Supervisor) (63 Points)

13 October 2020

Paid to labour contractor Mr.Satish for labour work/charges ₹4000.(including tds). How can I pass entries in tally. Is there any tds deductable ? What is percentage for contractor for tds. Pls guide me regarding this.

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7 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 13 October 2020

Yes , TDS is applicable under section 194C of the Income Tax act

Booking Entry

Labour Charges A/c Dr

To Labour Contractor A/c Cr

To TDS payable A/c Cr

( labour charges payable )

payment Entry

Labour contractor A/c Dr

To Bank A/c Cr

( payment made after deduction of TDS )

TDS Payable A/c Dr

To Bank A/c Cr

( Payment of TDS to GOVT account )

Note - you have deduct TDS while making payment , do not pay Total amount .

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Appanna (Supervisor) (63 Points)
Replied 13 October 2020

1)Contractor which a/c head have to group. 2) Tds payable which a/c head have to group.

prasad Nilugal (3914 Points)
Replied 13 October 2020

Yes TDS applicable under section 194c of the Income Tax act

Booking entry

Labour Charges A/c Dr
To Labour Contractor A/c Cr
To TDS payable A/c Cr
(Labour Charges payable )

Payment entry
Labour Contractor A/c Dr
To Bank A/c. Cr
( payment of Labour Charges)

TDS on payable A/c Dr
To Bank. A/c Cr
my a( payment of TDS to Govt account )

Note - you have to deduct TDS while making payment and same to deposit in GoVT account.

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 13 October 2020

Labour Contractor under TRADE CREDITORS - liability Side Balance sheet

TDS Payable under DUTIES & TAXES -liability side balance sheet

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Kutub Hamid (118 Points)
Replied 24 October 2020

If u are sure that mr. satish labour bill will go uptill ₹30,000/- in a financial year, then only deduct TDS
Only 1 bill in A financial year that to of rs. 4,000/- then no need to deduct TDS
percentage is as follows
if Mr. Satish is a Individual/HuF then 1%
and if other ( co., partnership firm) then 2%

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prasad Nilugal (3914 Points)
Replied 24 October 2020

Yes , you correct Sir , I thought Labour bill may cross 30000/- at the end of the year .

tausif ahmed (accountant ) (38 Points)
Replied 23 September 2022

Mr.Jogendra Isssued a bill for his interior work done on my rented shop of Rs. 2,00,000/- (bill includes material 140000 and 60000 labour charges) How can I pass entries in tally. Is there any tds deductable ? Pls guide me regarding this.