ashish gupta ( student) (1922 Points)
19 January 2012IF a payment has been made before deducting tds but we deduct and deposit TDS later from our pocket.
Now will the tds so deposited be allowed as expense or not ?
E.g. we paid 50000 to a contractor without deducting tds and later we deposit the tds @ 2% from our on pocket. So will this 2 % be allowed as expense?
Please guide.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 19 January 2012
ashish gupta
( student)
(1922 Points)
Replied 19 January 2012
Thanks I understand that tds will be deducted on 102% but expense will be booked as 100 % or 102 %.
Entry as
Expense A/c Dr
To TDS payable
Is it correct or not.
And whether the same expense will be allowed or not.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 19 January 2012
its better to issue debit note on party for TDS amount, otherwise TDS on TDS would arise,
dont claim the TDS amount under expenses
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