Tds

Karan Gupta (CA FINAL STUDENT) (414 Points)

20 August 2012  

 

Modify


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?