Account treatment
This query is : Resolved
Yousuf Ali SIlawat
(Querist)
06 December 2010
We have paid professional fees Rs. 6500/- related prior period expenditure.
Please let me know how to book prior period? & TDS will applicable?
Please let me know how to book prior period? & TDS will applicable?
CA Anisha Ray
(Expert)
07 December 2010
Your question is not very clear. Rs. 6500 is a prior period expense or it is current year expense for some prior period work.
If it is for a prior period you could simply pass an entry,
Prior period expense A/c ....Dr. 6,500
To Bank or Creditors A/c 6,500
The Prior period account being a P&L account.
Since the expense is below 10,000/- no need to deduct TDS. however, if the fees is from some professional who has raised other bills also and cumulatively it is more than 20,000/- TDS will be applicable @ 10%.
If it is for a prior period you could simply pass an entry,
Prior period expense A/c ....Dr. 6,500
To Bank or Creditors A/c 6,500
The Prior period account being a P&L account.
Since the expense is below 10,000/- no need to deduct TDS. however, if the fees is from some professional who has raised other bills also and cumulatively it is more than 20,000/- TDS will be applicable @ 10%.
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