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ADVOCATE NUSRAT (Querist)

05 February 2016 i have to pay Rs.50000 as legal expense,on which i have to deduct 5000 as tds,but there is a balance amount of Rs.5000 with the deductee(lawyer),so i paid him only Rs 45000 and i told him to deposit the tds of RS.5000 himself from the balance amount.WHICH IS PENDING WITH HIM. AND THE LAWYER HIMSELF DEPOSIT THE TDS AMOUNT ACCORDINGLY. is it justified/allowed under I.T ACT?
AND THE WITHDRAWAL FROM MY BANK ACCCOUNT IS ONLY Rs.45000
ALSO HELP ME HOW I MAKE THE ENTRY IN TALLY

Ganeshbabu K

Ganeshbabu K (Expert)

05 February 2016 TDS should be paid in the deductor TAN no. and should disclose the same in TDS return giving tds credit to deductee,if it happens it is allowed in IT act.

Dr.Expence 50000
Cr.TDS 194j 5000
Cr.Bank 45000

.
.
Dr.TDS 194J 5000
Cr.lawyer 5000

balance amount of 5000 with lawyer,..assumed your money is with him .

ADVOCATE NUSRAT

ADVOCATE NUSRAT (Querist)

05 February 2016 it means i have to do double entry firstly dr,exp cr tds & bank secondly dr tds cr lawyer?

ADVOCATE NUSRAT

ADVOCATE NUSRAT (Querist)

05 February 2016 it means i have to do double entry firstly dr,exp cr tds & bank secondly dr tds cr lawyer?

Ganeshbabu K

Ganeshbabu K (Expert)

12 February 2016 Yess, as you have paid tds not in bank but adjusting balance from lawyer

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