TDS

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This discussion addresses a common accounting problem where TDS was filed but not deducted from a contractor's payment. The user is seeking advice on how to adjust the outstanding TDS amount that needs to be recovered from the contractor. Clarification on the correct journal entries for this situation has been provided.

Biju Nadesan

Biju Nadesan (Querist)

01 April 2021 Hi,

I have a query regarding TDS. I have made payment to contractor without deducting TDS. However I have made the TDS filing for the same. Now how I should adjust the TDS amount which is yet to recover from the contractor.
Journal entries for the same.

CA Puja Sharma

CA Puja Sharma (Expert)

01 April 2021 Party A/c Dr.
To TDS Expense A/c Cr. (Provided you have made the below journal entry at the time of payment of TDS Payable without deducting from the Contractor)

TDS Expense A/c Dr.
To TDS Payable A/c Cr.

Biju Nadesan

Biju Nadesan (Querist)

01 April 2021 Thanks Puja for the clarification

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