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TDS RECEIVABLE ENTRY

27 June 2018

sir if i received a bill of rs 10000 by deducting TDS of rs 1000 in f.y. 2017-18 that is 31 st march 2018. and i have received tds certificate on 4 th may 2018 and also received amount in my bank in 4 th may 2018. so please clear me how i make entry by considering TDS receivable in Accounts???? sir please give me reply

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9 Replies

Mutyam (Employment) (83 Points)
Replied 27 June 2018

From the question posted, i understand that you have an outstanding receivable from a customer for Rs.10000/- and out of his he has deducted Rs.1000/- towards TDS and balance outstanding has been disbursed to your bank account on 04th May 2018 along with TDS certificate.

Entry for the same is as under which is recorded on 04th May 2018.

Debit Bank a/c for Rs.9000/-

Debit TDS Receiveble a/c for Rs.1000/-

Credit Customer a/c for Rs.10,000/-

In case if you were informed in advance about the TDS deduction duirng last year which is on 31st March 2018, you can make an entry as under:

Debit TDS Receivable a/c Rs.1000

Credit Customer a/c Rs.1000/-

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 27 June 2018

BANK 9000 DR

TDS 2018-19 1000 DR

. TO PARTY 10,000 CR

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 June 2018

You are supplied service on or before Mar-18 to the Party. The Deducted TDS on or before 31st Mar-18 (FY 2017-18...

At the time of supply You prepare invoice and enter as following...

Dr. Party Account - Rs. 10000

Cr. Supply of Service A/c - Rs. 10000

If you are not received any payments on or before 31st March. Then You will pass the TDS receivable entry on 31st March

Dr. TDS Receivable A/c - 1000

Cr. Party Account - Rs. 1000

Balance Rs 9000 to C/f next fy...

On 4th May You will enter the Payment receipt as

Cr. Party Account - Rs. 9000

Dr. Bank/Cash A/c - Rs. 9000

Rajkiran Ghosh (480 Points)
Replied 27 June 2018

sir please tell me the entry of unterest on fixed deposit received by considering tds receivable

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 June 2018

Examples Rs. 10 Lakhs and Interest @ 10%

At/On Deposit (Payment) :

Dr. Fixed Deposit A/c No: 00001 - Rs. 10,00,000

Cr. Bank A/c - Rs. 10,00,000

If Interest Rs. 100000 and TDS Rs. 10000

Interest Entry (Journal):

Dr. Fixed Deposit A/c No: 00001 - Rs. 100000

Cr Interest on Fixed Deposit A/c - Rs. 100000

TDS Entry (Journal) :

Dr. TDS on Fixed Deposit A/c - 10000

Cr. Fixed Deposit A/c No: 00001 - Rs. 10000

Receipt Entry for Payment received as Interest (Receipt Entry) :

Cr. Fixed Deposit A/c No: 00001 - Rs. 90000

Dr. Bank A/c - Rs. 90000

In case any doubt for the above pls revert the same via...

>>> GOOD LUCK <<<

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Indira Priyadarsini Kota (Practice) (590 Points)
Replied 19 January 2021

Sir, on what deposits is TDS deducted u/s 194A?

Prachi Bansal (3129 Points)
Replied 25 February 2021

Section 194 A is only applicable to a resident so that means that the section 194 A are not applicable in case of payment of interest to a non-resident. Section 194 A deals with deduction of TDS on interest other than interest on securities like Interest on Loans and Advances other than Banks, Interest on Fixed Deposits.

Hope this answers your doubt!