Tds recovery

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2014 Dear Sir ,

We have paid TDS for 2013-14 for our Employees . Now we want to recover that TDS Amount .So what will be the Entry while paying that amount if we will recover that particular amount while paying the Salary ?

We made Bank transfer for Salary .

For Example : Employee - A Gross Salary Rs.30,000.00 TDS Recovery - 4290.00 Net Bank Transfer Rs.25710.00

Kindly Explain.........

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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18 September 2014 Dear friend,

While deducting and depositing tax of those employees (lets say Mr. A) you must have passed below entry,

Employee (Mr. A) A/c. Dr.4290
To TDS payable Cr.4290

TDS payable Dr.4290
To bank Cr.4290

When salary becomes due pass below entry.
Salary A/c. Dr.30,000
To employee Mr. A Cr.30,000

And while recovering the same from salary payment, pass below entry.
Employee (Mr. A) A/c. Dr.25,710
To bank Cr.25,710

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2014 Dear Sir ,

We have deposited Employee TDS & now we want to RECOVER FROM him. So May I generate TDS Recoverable A/c ? & If yes then TDS Recoverable A/C under which group of Balance Sheet ?

Kindly explain.......

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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19 September 2014 Dear friend,

There is no need to create such account of TDS recoverable.

And tell me which entry you passed on depositing TDS ?

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2014 Dear Sir ,

May I pass entry as

Employee A/C DR. 30,000.00
Bank A/C Cr. 25710.00
Other Income A/c Cr. 4290.00
(Under P&L Indirect Income)

Kindly Explain.....