Provision for audit fee
This query is : Resolved
25 May 2010
Dear sir, please tell me about the provision for audit fee at the 31 march year ending. in the company books accounts. What will be entry ?
25 May 2010
Audit Fess A/c ......Dr Rs.10000
To Audit Fees Payable or Party A/c Rs.9000
To TDS Payable u/s 194J A/c Rs.1000
(Assuming Audit Fess of Rs. 10000/-)
To Audit Fees Payable or Party A/c Rs.9000
To TDS Payable u/s 194J A/c Rs.1000
(Assuming Audit Fess of Rs. 10000/-)
25 May 2010
Entry will be made as like Sanjay ji explained. But TDS will be dedcuted only in case when Amount exceeds with auditors Rs. 20000.
Bimal Thacker
(Expert)
25 May 2010
Agree with both expert. However I will suggest the following entry when TDS is matter.
Audit fees A/C .....Dr.100000
Mr X (Auditor) A/C Dr. 10000
To Audit fees Payable Cr. Rs.100000
To TDS payable Cr.Rs. 10000
Assuming Audit fees 100000 and TDS 10000
On receipt of bill of Rs. 100000 in next year entry will be as under
Audit fees payable Dr. Rs. 100000
To Mr. X ( Auditor) Rs. 100000
Audit fees A/C .....Dr.100000
Mr X (Auditor) A/C Dr. 10000
To Audit fees Payable Cr. Rs.100000
To TDS payable Cr.Rs. 10000
Assuming Audit fees 100000 and TDS 10000
On receipt of bill of Rs. 100000 in next year entry will be as under
Audit fees payable Dr. Rs. 100000
To Mr. X ( Auditor) Rs. 100000
25 May 2010
No, Mr. Bimal,
Provision of any audit fees payable will be made net of TDS. Not by full amount.
We can made entry as like
Audit fee Dr. 100000
To Mr. X 90000/-
To TDS Payable 10000/-
Provision of any audit fees payable will be made net of TDS. Not by full amount.
We can made entry as like
Audit fee Dr. 100000
To Mr. X 90000/-
To TDS Payable 10000/-
25 May 2010
SORRY GOT THAT EXAMPLE WRONG....IT SHOULD BE AS SUGGESTED BY MR. BANSAL......TDS TO BE DEDUCTED ONLY WHEN IT EXCEEDS THRESHOLD LIMIT (I.E. RS.20000/-). THANKS BANSAL JI FOR CORRECTION.
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