21 July 2009
Dear Sirs, If Service is rendered in mid of June by a contractor to my company but contractor submits bill in end July then how to enter this in tally system? if I am entering in June then quary will raise that why we didn't deposit TDS in July 7th. So what is solution.
21 July 2009
If you are a listed company you have to close your books of account for the June quarter and in that case book all the expenses. Pass a provision entry for the service rendered to you. On provisional entries TDS is not to be deducted and on the first day of July reverse the entry. Now, when the contractor submits the bill then pass proper entry and deduct TDS.
If you are a non-listed company then you wait till the contractor submits the bill and then pass the proper entry. If there is a requirement of monthly reporting you can report this details in pending entries to be passed awaiting the contractor bills.
CAclubindia
