Accounting of tds if vendor became bankrupt & unable to pay
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 January 2015
Dear Expert,
If we issue an invoice for services to a vendor & he deducted TDS & deposited the same but unable to pay balance payment due to bankrupt. So what steps should we be follow for accounting of this situation????
Is TDS amount is our income or advance tax only ???
What steps should follow for income tax purpose???
Thanks in advance
If we issue an invoice for services to a vendor & he deducted TDS & deposited the same but unable to pay balance payment due to bankrupt. So what steps should we be follow for accounting of this situation????
Is TDS amount is our income or advance tax only ???
What steps should follow for income tax purpose???
Thanks in advance
28 January 2015
U would already had accounted the income on raising the invoice by debiting the customer account. Now, as the customer (i think u mentioned as vendor) deducted and paid the TDS, the credit will be available to you in 26AS and hence credit the customer account and debit advance tax a/c or TDS receivable a/c or such other account as the company maintains. Now, as the party became bankrupt, he will not be making the balance payment. treat it as bad debt. in taxation, u will have to declare 100% as income, and the amount not received as bad debt.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- Sales return eway bill
- Specified Profession
- GST ON DAMAGED GOODS
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
