Accounting for TDS on closing

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Ashwani Goel (Querist)

26 May 2010 After closing on 31-03-10, I received payment from my debtor on 15/05/10 in respect of Invoice raised in FY 09-10,after TDS. I have already opened a seperate ledger for "TDS FY 09-10" in books. I will receive TDS certificate from customer for FY 09-10 in respect of this TDS. If I pass this receipt entry in FY 10-11 and show TDS receivable in "TDS FY 09-10" a/c, how will I claim correct TDS for ITR for FY 09-10, as balance in this account on 31st march 2010 will not include TDS receivable after 31st mar 2010.

Rahul Vora

Rahul Vora (Expert)

27 May 2010 At the end of every financial year, you have to account for the TDS Receivable on 31st March by passing the following JV,
TDS Receivable A/c Dr
To Debtor A/c
By this entry the TDS Receivable for that particular year will be accounted for and the Debtor's A/c will show balance which is receivable from Debtor after TDS.
For e.g.,
Rs.100/- is receivable from A including Rs.10/- TDS. So you will pass a JV,
TDS Receivable A/c Dr Rs.10/-
To A Rs.10/-
This will reduce A's balance to Rs.90/- which will be actually received in next year. And your TDS A/c is already showing the balance which you have to claim

Ashwani Goel

Ashwani Goel (Querist)

27 May 2010 Thanks for the reply.

On 31st mar 10 I will not be knowing the TDS receivable amount as the receipt has come in May 10. So are u suggesting for passing back dated entry. If it so, in case my book are closed how should I deal with that.

Secondly, suppose my books are not closed, after passing TDS rece entry on 31 st Mar 10 (which I will be knowing in May 10) would impact my Service tax liblilty where I have charged service tax on my bill on the amount of TDS rece entry and I must have filed my service tax return. How should I deal with it. Please explain in detail.

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