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TDS on advance bill

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)

07 April 2020

We have paid Rs 3,00,000 to catering business and taken TDS at 1% on 19-03-2020 for FY 2019-20.
Now catering fellow as given bill dated 04-04-2020 for FY 2020-21 for Rs 8,00,000/-.

What to do now?

We need to take TDS for Rs. 5,00,000/-

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9 Replies

V P Narasimhan (Accounts Manager) (791 Points)
Replied 07 April 2020

Provision can be made & deduction TDS also can be made. Otherwise a split upbill can be requested for two differential FY and acc*nt the same accordingly.

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Mandakulathur Ananthanarayanan (186 Points)
Replied 07 April 2020

TDS shall be made on balance rs. 5 lakhs in April month and paid on May 7, 2020

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 07 April 2020

So same shall be treated for FY 2020-21 of Rs. 5,00,000/-. Will not be problem for the supplier ?

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 07 April 2020

Originally posted by : V P Narasimhan
	Provision can be made & deduction TDS also can be made. Otherwise a split upbill can be requested for two differential FY and acc*nt the same accordingly.

Will it be possible to split? Will not be a problem for GST?

Mandakulathur Ananthanarayanan (186 Points)
Replied 07 April 2020

No. The supplier would have received TDS credit for rs. 3,00,000 in FY 2019-20 but since he will declare his income only in FY 2020-21, the TDS credit would not be availed. Now, in FY 2020-21, the supplier will declare Rs. 8,00,000 as income and take credit of TDS paid for rs. 3,00,000 and balance rs. 5,00,000 in FY 2020-21

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 07 April 2020

@ Mr Avinash Jeevan Dsouza.,

You must be deduct (already You deducted) for the payment of 3lakhs which is paid FY 19-20...

Don't be confuse for the bill received in FY 20-21. You will deduct TDS against Rs 5 lakhs in FY 20-21...

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 07 April 2020

Originally posted by : RAJA P M
	@ Mr Avinash Jeevan Dsouza., You must be deduct (already You deducted) for the payment of 3lakhs which is paid FY 19-20...Don't be confuse for the bill received in FY 20-21. You will deduct TDS against Rs 5 lakhs in FY 20-21...

So as per our books we have deducted tax for 3 lakh in FY 2019-20
balance 5 lakh in FY 2020-21
and booked the expenses in FY 2020-21