ASHISH (ACCOUNT ASST) (74 Points)
27 May 2014As TDS is deductable on provision of expense
Audit fees exp Dr,1,00,000/-
To Provision for exp ( Audit Fees ) 90,000/-
To TDS Payable u/s 194J 10,000/-
( on 31 Mar Making provision of audit fees )
What will be the subsequent effect of the above entry next year ?
What about the TDS amount we deposit while making of provision?
praveen
(Chartered Accountant)
(6971 Points)
Replied 28 May 2014
"What about the TDS amount we deposit while making of provision?"
If you already deposited the amount in govt a/c while making provision on 31/3/13, then the entry would be as under:
Audit fees..Dr 100000
To Audit fees payable(provision) 90000
To TDS payable 10000
and
TDS payable...dr 10000
To Bank 10000
NEXT YEAR
Audit fees pyable(provision)..dr 90000
To bank 90000
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