Tds

955 views 4 replies

Karan Gupta

CA FINAL STUDENT

414 Points Joined July 2010

SUPPOSE A BILL OF RS 1,00,000/- FROM PARY AND TDS TO BE DEDUCTED AT THE RATE OF 1% AT TIME OF BOOKING

OF ENTRY.BUT MY ACCOUNTANT HAD MADE PAYMENT TO PARTY RS 100000 AND PASSED THE ENTRY IN BOOKS OF ACCOUNTS IN THAT WAY WHAT TO DO

( 1)PURCHASE A/C DR. 100000

TO PATY 100000

(2)PARTY A/C DR 100000

TO BANK 100000

(3) PARTY A/C DR 1000

TO TDS ON CONTRAT 1000

DOUBT

(1) TDS DEDUCTION IS ALLOWED TO MY COMPANY UNDER TAX AUDIT?

(2) ENTRIES PASSED ARE CORRECT?

(3) IF TDS IS RECOVERED FROM PARTY THEN IT IS ALLOWED AS DEDUCTION?

(4) IF TDS IS NOT RECOVERED FROM PARTY THEN I CLAIM AS BAD DEBT?

Replies (4)

sanjiv

accountant

27 Points Joined April 2010

Please Give Me the Journal Entries regarding Tds received from party or Paid to Party.

TDs Procedure to File TDS, Quartely and Yearly payments.

Vineet

Assistant Manager

140 Points Joined May 2012

In that case accouting entry is incorrect as you paid extra amount by Rs 1000 to the party.

As you have paid the complete amount plus he can avail the TDS amount that you have paid to the government.

Correct accouting entry would be

Party Ac Debit 100000

to Bank ac 99000

to tds account 1000

this amount is not allowed as deduction under tax audit.

Probable solutions is you can asked the party to make a payment of Rs 1000 to you as you have paid extra amount in the form of TDS or adjusted agianst future billing.

Hemant Kumar

Accounts Manager MBA (Fin) CMA*

6450 Points Joined March 2010

You have been paid 1000 extra to this party. You should have to first deduct the tds amount from the billed amount. and then balance amount pay to the party.

You have to enter this trasaction is as

1) Purchase A/c Dr. 100000

to Party Ac. 100000

2) Party A/c Dr. 1000

to TDS Payable Ac. 1000

3) Party A/C. Dr. 99000

to Bank A/c. 99000

4) TDS Payable A/c. Dr. 1000

to Bank A/c. 1000

Dixit

CA Final

2405 Points Joined April 2010

Originally posted by : Hemant Kumar....
	You have been paid 1000 extra to this party. You should have to first deduct the tds amount from the billed amount. and then balance amount pay to the party. You have to enter this trasaction is as 1) Purchase A/c Dr. 100000 to Party Ac. 100000 2) Party A/c Dr. 1000 to TDS Payable Ac. 1000 3) Party A/C. Dr. 99000 to Bank A/c. 99000 4) TDS Payable A/c. Dr. 1000 to Bank A/c. 1000