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journal entry for TDS

CA Final student


 since expense is allowable if TDS is deposited by the deducter before due date what journal entry will be passed for expense for which TDS has been deposited after 31st March. Please give journal entry for expense due as well as payement of expense made in next year..



Total thanks : 2 times

 
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FCA, Future CA


Reply:

1.  if any expense is booked in the books of accounts before 31st March only TDS Liability will arises.

2.  However, if any advance is paid (say for contracts), then TDS Liable will be there.  But for that expenses will not be booked before 31st march.  The bill when we are getting, only on that DATE it will be booked.  say for example, if advance for contract is paid rs.100000 on 15th March.  TDS should be deducted at 2% or 1% on that i.e. Rs.2000 or 1000.  and if bill date is 10th Apr of the next FY, then it should be booked in the next FY only.

HOPE THIS COULD HAVE SOLVED YOUR DOUBT


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Dear Siva sir,

in this case how much amount we shows in form 16 in current year. Next year we getting the bill its cost suppose 150,000/- then we will shown in balance or full amout. please explain me clearly ,

thanking you

 
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Dear Shefali,

 

The journal entry has nothing to do with allowability/non allowability of expenses for IT purpose.

 

The entries are :

31/03/2010

1) Expenses Dr. 

     TDS payable Cr.

On payment date : TDS payable Dr. , Cash/Bank Cr.

 

Expenses are allowable, if the TDS is paid on or before due date of filing return of income w.e.f. AY 2010-11.

 

Dear Naidu,

 

In the current year, in form 16, Rs. 1L will be shown and in next year Rs. 0.50L wil be shown.

 

 

 

 


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Manager - Accounts


1. When expense will become due :

Expense A/c Dr.

To TDS Payable A/C

To Creditors / Accrued Liability Account

2. When TDS submitted :

TDS payable Dr.

To Bank

3. When Expenses paid :

Sundry Creditors / Accrued Liability Dr.

To Bank A/C.

 
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Pursuing CA


When expense is due

            Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

When Expense is paid

           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

When TDS is Remitted/Paid

           TDS Payable A/c...Dr

                   To Bank/Cash A/c


Total thanks : 2 times

 
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Financial Analyst


Originally posted by : Aneesh

When expense is due


            Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c

 
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CA-FINAL STUDENT


                When expense is due


              Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

              When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

              When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c

 
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Sr.Accountant


 When expense is due


              Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

              When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

              When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c
 

 
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Manager at Godrej & Boyce.

Agreed wit Aneesh....

 
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