Journal Entry for Incentive and TDS
This query is : Resolved
23 April 2010
In 2008-09, the expense for incentive was booked as Incentive A/c DR. 150000
To Incentive Payable A/c 150000
The payment of incentive is made in April 2010 and the entry made is -
1.Incentive Payable Dr. 150000
TO TDS Payable A/c 45000
TO Amount Payable a/c 105000
2. Amount Payable A/c 105000
To Bank 105000
Is this journal entry correct?
To Incentive Payable A/c 150000
The payment of incentive is made in April 2010 and the entry made is -
1.Incentive Payable Dr. 150000
TO TDS Payable A/c 45000
TO Amount Payable a/c 105000
2. Amount Payable A/c 105000
To Bank 105000
Is this journal entry correct?
23 April 2010
no
tds to be deducted at the time of payment or at the time of accounted for , whichever is earlier.
tds to be deducted at the time of payment or at the time of accounted for , whichever is earlier.
23 April 2010
If the incentive is in relation to salary then TDS on salary u/s 192 is deductible at the time of payment of salary and not at the time of accrual. Though the journal entries as submitted are correct TDS need not be deducted at the time of accrual of incentive related to salary and should be deducted at the time of payment of salary.
If TDS already deducted and paid then nothing can be done now and entries as per above is correct.
If TDS already deducted and paid then nothing can be done now and entries as per above is correct.
23 April 2010
So the entry should be
Incentive Payable Dr.
To Amount Payable
And at time of actual payment the entry should be
Amount Payable Dr.
TO TDS Payable
TO Bank
Incentive Payable Dr.
To Amount Payable
And at time of actual payment the entry should be
Amount Payable Dr.
TO TDS Payable
TO Bank
24 April 2010
Yes if it is in relation to salary only
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