Journal entry for tds payable

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2012 dear all

i have made payment of tds of salary & contractor of march 12 with in due date now we have arise a situation to rectify the same & also make payment for the same with interst. please suggest me the effect of same in my books.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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23 June 2012 for exp you have paid to contractor for Repair & Maintenance expenses:-

j/e will be as under....

Repair & Maintenance A/C--------Dr 1000
contractor A/C--------Dr 100
To TDS payable 100

To contractor 1000

Payment of tds:-
TDS Parable -----------A/C------Dr100
To Bank 100

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Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2012 DEAR SIR

in case of TDS salary on 31 march, first i have to recover TDS from employee after that payment entry should be made. whether i m correct or not. we are using tally payroll for the same. please suggest.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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23 April 2013 when you are paying salary you are automatically recovering the amount from them

as J/e pass is

Salary A/c........Dr Rs.1000
to Bank Rs.900
to TDS payable Rs.100

here you have booked expense at Rs.1000/- and paid Rs.900/- that means you have recovered Rs.100/-

now since the same is paid in the next year as this TDS is of March

therefore no changes is required in the books

as the TDS will be paid in the next year with interest

TDS payable A/c......Dr Rs.100/-
Interest on Tds A/c....Dr Rs.10/-
to Bank Rs.110/-

this entry will be passed next year in which TDS is paid

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