Bhavesh (Accounts) (899 Points)
23 October 2011We basically deal with a labour tds. we deduct the TDS @ 2% (TDS on Contract) when the bill is received from A labour as under whose bill amt. is Rs.20000/- Less 2% TDS deducted Rs.400/- we post fllg. entry.
Labour Chgs. A/c. Dr. Rs. 20000/-
TDS A/c. Cr. Rs. 400/-
A labour Cr Rs. 16000/-
I want to know whether the above transactions is correct as we have to debit the A labour while making the Pymt. and how to treat the TDS entry with the above. plz. let me know
Devendra
(Chartered Accountant)
(4775 Points)
Replied 23 October 2011
Yes. The above Journal Entry is correct.
Regards,
Devendra k
visu iyer
(mentor)
(834 Points)
Replied 24 October 2011
The rate of TDS is 1% u/s 194 C for non corporate assessee...
By principle the entry is correct. (not by value or arithmatics)
Brajesh gautam
(student)
(232 Points)
Replied 25 October 2011
Above entry is correct , not value , if non corporate assesee. and while making payment to A Labour
A labour DR
to bank or cash
rakesh ostwal
(CA)
(23 Points)
Replied 01 November 2011
this entry is also right however you can pass two entries at the same time to make somebody more clear.
labour charges dr
to Labourer
and Labourer a/c dr
to TDS
Barun Nandi
(CWA)
(35 Points)
Replied 01 November 2011
Yes the above entry is correct.
194 C ( consideration for contract)
who is liable to deduct- Any assessee otherthan individual and huf whose accounts is not required to be audited u/s 4AB of income tax act.,
who is liable to pay- Indian resident.
Rate- 1% incase of individual or huf, 2% in case of other assessee
Exemption- single payment Rs.30000, agreegate payment Rs.75000
when to be deducted- at the time of payment or at the time of credit which ever is earlier.
when to be deposited- (i) with in 7 days from the last date of month in which it is deducted
(ii) if it is credited on the last date of year then with in 30 days from the last date of the year
TDS certificate- form no 16A
Deduction at nil rate or at a reduce rate -on submission of a declaration in from no 13 to A.O.
( If the pan number is not Quoted then the rate will be 20%)
Hemanth Sai
(CA-FINAL,AUDIT TRAINEE)
(110 Points)
Replied 02 November 2011
Above entry is correct , not value , if non corporate assesee and while making payment to A Labour it is 1%
1)Labour Chgs. A/c. Dr. Rs. 20000/-
TDS A/c. Cr. Rs. 400/-(if 2%)
A labour Cr Rs. 19600/-
2)A labour DR 19600
to bank or cash 19600
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
