02 May 2012
When tds is not paid on time then we have to deposit tds alongwith interest. According to me Interest On Tds is not allowed as deduction under income tax, and the co. can not charge interest from the deductees. and also the deducteed do not get the credit of this in 26AS. Then what should be the accounting entry.
For example an employee having salary of Rs. 50000 and tds deducted is Rs. 5000 and Interest is Rs. 200 then what will be the accounting entry?
02 May 2012
Interest on tds a/c. ...... Dr To Bank a/c This would be shown with p&l. But at the time of computation it. .would be added back with section 43B provision i.e. Disallowed expenses
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