How to Book a Expenses for Advance payment for AMC
This query is : Resolved
29 April 2009
Dear Experts,
Our company has given half money as an advance for AMC for Out DG sets. Total Cost AMC cost is 65000/- . Half money we will give after 6 months.
Now my question is when we will book this expense at time of giving advance or at the time of AMC of DG sets and will give a receipt of AMC done.
At the time of giving advance AMC service provider providing an acknowledgment receipt which is for advance payment making to him.
Please Guide me.
Our company has given half money as an advance for AMC for Out DG sets. Total Cost AMC cost is 65000/- . Half money we will give after 6 months.
Now my question is when we will book this expense at time of giving advance or at the time of AMC of DG sets and will give a receipt of AMC done.
At the time of giving advance AMC service provider providing an acknowledgment receipt which is for advance payment making to him.
Please Guide me.
29 April 2009
ask for AMC Bill from Party & Booked through AMC Bill.TDs also applicable on advance payment.
30 April 2009
Please also tell us the timeline.i.e, when you have made the payment and when is your book closure.. the proper accounting treatment would depend on this
30 April 2009
The day Annual Maintenance Contract is signed the entries should be passed. The expenses pertaining to the next year may be booked as Prepaid Expenses. TDS u/s 194C or 194J may have to be deducted which may be deposited as per the Income Tax Rules.
In case of AMC for genset the tax will have to be deducted u/s 194C only. The entry may be passed as per under:
Generator Expenses Dr.
Prepaid Expenses Dr.
To Contractor's A,c
Contractor's A/c Dr.
To TDS Payable
In case of AMC for genset the tax will have to be deducted u/s 194C only. The entry may be passed as per under:
Generator Expenses Dr.
Prepaid Expenses Dr.
To Contractor's A,c
Contractor's A/c Dr.
To TDS Payable
30 April 2009
Thank you very Much.
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