TDS entries

Page no : 3

siva durga prasad (Internal Auditor ) (34 Points)
Replied 25 September 2012

HI,

COMMISSION A/C 50000

To Tds payable 5000

To party 45000

2. tds payable 5000

to bank 5000

3.party 45000

to bank 45000

this way is my option

Upgrade to CAclubindia Pro. Subscribe Now!

Ravishankar K (Accountant) (461 Points)
Replied 18 June 2013

Dear Sir.

But what if party is creditor and we need to record the bill no and date for commission or any other purpose for eg. rent . Suppose partry gave me invoice for Rs.50000/- inv no 001 dt. dd/mm/yyyy . Then my first entry would be JV

Rent Ac Dr. 50000

Party Ac Cr. 50000 wherein the party is credited the full bill amount.

Second entry would be JV

party ac Dr. 5000

TDS ac Cr. 5000

Third Entry would be :

Party Ac Dr.45000/-

Bank Ac Cr. 45000 payment to party

Fourth entry at end of month / during payment of all collected TDS during that month :

TDS A/c Dr. (full month TDS amt incl 5000 of the party)

Bank Ac Cr. (---do---)

by the above entries we would know which party got which bill and what was deducted from the party.

All above entries i suggested are for tally software, for any other software depending on the features of that software entry can be modified.

Also I would like to know whether the original invoice is to be filed with JV or Payment Voucher. Does JV need supporting documents? or a copy need to be filed in JV. Please do repoly.