Dear All,
i have a query in my mind so the query is .
if i kept a provision in privious year and we deposited the tds for the same . now we received the original invoice so shall i deposite the interest for that .
pankaj (Sr. Accountant) (72 Points)
23 December 2015Dear All,
i have a query in my mind so the query is .
if i kept a provision in privious year and we deposited the tds for the same . now we received the original invoice so shall i deposite the interest for that .
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 23 December 2015
As I understand, if provision was made for the full amount (as mentioned in the invoice) and TDS was paid on such amount within due date, then there is no need to pay interest on TDS when the invoice is received later in respect of such provision.
pankaj
(Sr. Accountant)
(72 Points)
Replied 23 December 2015
suppose fy 2014 - 15c exp 100
to tds payable 10
to provision 90
now if i received a invoice which amount is 160
in this case exp 70
provision 90
to tds payable 6
to party 154
so now please advise me that shall i paid interest in rest tds payable amount which is 6
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 23 December 2015
1. Entry for provision:
Exp Dr 100
To TDS 10
To Provision 90
2. For accounting the invoice:
Exp Dr 60
Provision Dr 90
To TDS 6
To Party 144
3. If the invoice is current dated and if you are going to account it now, then no need to pay interest on TDS. You can make a fresh entry for difference as per (2) above.
4. But if you are going to account the difference in previous year itself, then interest has to be paid on difference amount of TDS.