Tds
This query is : Resolved
27 May 2020
Dear Professional Colleagues
Some of our clients forgotten/unknowing to deduct the tds from the creditors but after we find, then they deduct the tds and file the Tds return(which is very small amounts like Rs.500 in 194 c) , now the problem is they did not enter this tds adjustment entry in the books of accounts as they have alredy paid full amount to the creditor(if they entered in books then that small amount of tds remain shows receivable from that creditor), is it acceptable or not, because as per the tds section total tds paid and tds return filed.
please clarify my doubt Thanks in Advance
Some of our clients forgotten/unknowing to deduct the tds from the creditors but after we find, then they deduct the tds and file the Tds return(which is very small amounts like Rs.500 in 194 c) , now the problem is they did not enter this tds adjustment entry in the books of accounts as they have alredy paid full amount to the creditor(if they entered in books then that small amount of tds remain shows receivable from that creditor), is it acceptable or not, because as per the tds section total tds paid and tds return filed.
please clarify my doubt Thanks in Advance
27 May 2020
There are two aspects here
1. Accounting: TDS entries has to be passed in creditor ledgers. On doing so your creditor will show a receivable balance as payment is made in full already.
2. Adjustment of payment:
a. In case of recurring transactions with creditor: Adjust TDS in next transaction & make the payment
b. If it is non recurring in nature : Inform creditor there was an excess payment due to non deduction of TDS & recover the same (Practically i understand recovery is difficult)
1. Accounting: TDS entries has to be passed in creditor ledgers. On doing so your creditor will show a receivable balance as payment is made in full already.
2. Adjustment of payment:
a. In case of recurring transactions with creditor: Adjust TDS in next transaction & make the payment
b. If it is non recurring in nature : Inform creditor there was an excess payment due to non deduction of TDS & recover the same (Practically i understand recovery is difficult)
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29 May 2020
book the extra amount paid as receivables. If they do not pay the same then treat balance w/off.
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