Entry for mob.adv. recovery

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2011 SITUATION -1

we gave a Rs.10 Lakhs to Sub-contractor for Mob.Adv. entry for the same is

Mob.Advance A/C Dr 10,00,000/-
To TDS A/C 20,000/-
To Bank 9,80,000/-

SITUATION -2
They Submitted Bill for 2 lakhs and we have to deduct 10% of bill value as Mob.adv. recovery
Expenses A/C Dr 200000
To TDS A/C Dr 3600 (180000*2%)
To Mob.Adv A/C Dr 20000
To Bank 176400

Whether the Entry is Correct

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

27 December 2011 First of all, TDS was required to be deducted when you gave the advance.

Since you did not deduct TDS at the time of giving advance, you should have deducted the whole amount of TDS on receipt of the invoice.

Secondly, you have calculated TDS on Rs. 1,80,000/- (after adjusting amount of advance), which again is incorrect.

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2011 first entry I clearly mentioned TDS deduction. Please go through the same and reply.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

27 December 2011 My mistake.

In that case, the treatment is correct.

Since only 10% of the advance is adjusted in the invoice, TDS will be deducted only on the balance amount, which you have computed correctly.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RAGHUNATH KASIBHOTLA

raval umesh

Rameshkumar Jain

DSK TMC

Hemkumar

Subscribe Now

Entry for mob.adv. recovery

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA