21 August 2016
We paid our to parties full amount of expenditure as we booked , later at the time of finalisation we paid TDS to department. As a result our creditors showing debit balance, how to close their balance, Ex: Expenditure:- 80000/- Paid :- 80000/- Later TDS deducted and paid :- 16000/- they are not our regular parties.
Even if we book any expenditure is that allowable as expenditure.
22 August 2016
Dear Vivek,
The excess amount paid is recoverable from the party. you cannot claim it as an expense but treat it as unsecured deposit and recover the same from the party. if the party doesn't pay them write off as bad debts after 3 years.
CAclubindia
