TDS on Contractors

This query is : Resolved

Yasmin Salim Shaikh (Querist)
Follow

14 August 2009 There was a disallownace u/s 40(a)(ia) due to non deduction of TDS on Payment to Contractor during the F.Y. 2007-08.
This TDS was not even deducted & paid during the financial year 2007-08 & 2008-09 so it was not allowed in the respective Assessment years.

The said TDS was deducted and paid to the credit of Govt. during the F.Y. 2009-10

I Wanted to Confirm -
Q1)what will be the Accounting Entry for the same?
Q2)Whether we will debit the party A/c and issue the TDS Certificate for the same?
Q3)What will be thw Period on the TDS certificate?

Thanks & Regards

raghunandan

raghunandan (Expert)
Follow

14 August 2009 TDS certificate is to be issued during the CY pertaining to the PY in which the amounts was pad.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

14 August 2009 Agree with the expert.
Accounting Entries- In Journal

Contractor's A/c Dr xxxx
To TCS -Contract A/c xxxxx

For payment of TDS and receipt from the
contractor make entries in cash/bank book

on Payment to Govt.---
TCS -Contract A/c xxxxx
To Cash/ Bank
on Receipt from Contractor
Cash/ Bank Dr
To Contractor's A/c

Message likes : 1 times