TDS Deduction Entry

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This query is : Resolved

Rama Krishna (Querist)

28 March 2008 Suppose we have to deduct TDs on transport for a Contractor say ABC and the Bill received is for Rs. 25000/-

The usual Entry will be
DR CR
Transport charges 25000

ABC 25000

and later on we pass TDS Entry as

ABC 515

TDS Payable 515

But now they want to pass only single entry

Transport Charges 25000
TDS 515
ABC 24485

If this is correct or not and How will the Service Tax be effected if it has to be paid by us.

and the same if we pay the amount first as advance then how to make the TDS deduction

Jitender

Jitender (Expert)

28 March 2008 the entry is very much correct. if tds is deducted on advance payment ,then in the entry u have mentioned, tds would be shown with lesser amt.

Rama Krishna

Rama Krishna (Querist)

28 March 2008 if No advance is paid and we make the Bill Entry Directly.

is the Single Entry of the bill in my query correct.

Shyam Lal Naik

Shyam Lal Naik (Expert)

28 March 2008 The 2nd entry is correct, but the earlier one is a better method.

shanti prakash

shanti prakash (Expert)

28 March 2008 both d entries r correct. if ur paying advanced to transporter tds to be deducted at that point of time only d entry will be : abc co. a/c dr to tds payable and to bank a/c(net amount)and later when the services r finally provided then transport charges a/c dr to abc co. ltd a/c and also for tds the entry would be tds payable a/c dr to bank a/c.

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