Tds & entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 Sir,
I have paid professional fees rs.2.52.810/-
after deduction of TDS
he was suppose to make billing Rs.2,50,000/-plus service tax but i had made payment but still not received his bill

i am confused now that how do i make Journal entry for his TDS.

i just made his payment entry i.e. rs. 2,52,810 after deduction of TDS.10%.

Pl suggest

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 March 2014 u must book entyr on gross basis i.e including servcie tax portion...

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 Sir,
how wold be the entry?
could you pl show me how it is as per rule.
Thanks

CA Jitender Sharma

CA Jitender Sharma (Expert)
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20 March 2014 1. Party a/c dr ( net of tds amt)
To bank ( net of tds amt)
2. party A/c Dr (tds amount)
to tds payable a/c (tds amount)

on receiving of bill

1. service tax recoverable dr 2810
Profeesinal fees dr 250000
to Party a/c 252810
(if st credit is taken othewise it will added to exp only)