Journal entries

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Saikat Banerjee (Querist)
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09 September 2019 We being a company received an advance amount of Rs 800000/- (Tds: Rs 16000/- Net Amt: Rs.784000/-) from a party on 30.08.19 for rendering a service in Sep'19. However die to some unforeseen circumstances the service is not going to be rendered to the party. We intend to refund the amount to the party. We have booked TDS receivable of Rs.16000/- in our books & party has also deposited the same in govt account within the due date i.e 07.09.2019. My question is what amount is to be refunded to the party along with the requisite journal entries

Gokul Sharma

Gokul Sharma (Expert)
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09 September 2019 ask the party to revise tds return and claim the unbook challan in next tds liability. refund the whole amount to the party and reverse the previous journal enteries.

Saikat Banerjee

Saikat Banerjee (Querist)
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10 September 2019 Sir,
That means we have to refund Rs.800000/- to the party

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