Tds accounting
This query is : Resolved
28 May 2014
Sir,
20,000/- Rs. of payment made to party in advance for work dated 08/05/14. Bill received of Rs.60000/- dated 17/05/2014. so which amount should consider for tds deduction? 40000/- Or 60000/-?
&
is there any issue about 20000/- Rs. which was paid earlier?
please guide me
20,000/- Rs. of payment made to party in advance for work dated 08/05/14. Bill received of Rs.60000/- dated 17/05/2014. so which amount should consider for tds deduction? 40000/- Or 60000/-?
&
is there any issue about 20000/- Rs. which was paid earlier?
please guide me
28 May 2014
Hi Chetan,
From your query it is understood that the work is purely contractual. In this case, TDS has to be deducted on the total invoice value of (Rs. 60,000).
The calculation goes like this,
Invoice value: Rs 60,000
Less: TDS @ 1% / 2% / 20% (as applicability) i.e. say Rs 600
Now Gross value would be Rs 59,400
Less: Advance Rs. 20,000
Net Payment: Rs 39,400
Good Luck...
From your query it is understood that the work is purely contractual. In this case, TDS has to be deducted on the total invoice value of (Rs. 60,000).
The calculation goes like this,
Invoice value: Rs 60,000
Less: TDS @ 1% / 2% / 20% (as applicability) i.e. say Rs 600
Now Gross value would be Rs 59,400
Less: Advance Rs. 20,000
Net Payment: Rs 39,400
Good Luck...
Guest
Guest
(Expert)
28 May 2014
first think i want to say is why u dont have deducted tds on the advance amount
tds liability arises
at the time of advance payment
at the time of booking of expense
which ever is early
please check this because you are making mistake if u hadnt deducted tds on advance amount
and tds will be deducted on 60000
20000 at the time of bill
40000 at the time of booking overall expenses
tds liability arises
at the time of advance payment
at the time of booking of expense
which ever is early
please check this because you are making mistake if u hadnt deducted tds on advance amount
and tds will be deducted on 60000
20000 at the time of bill
40000 at the time of booking overall expenses
28 May 2014
Ankit Bohra is right.
In this case advance is made on 08th May & the invoice is raised on 17th May, which arises before TDS remittance date. In that case, the above said calculation may be adopted.
But the correct way is to deduct TDS on advance payment itself.
Good Luck..
In this case advance is made on 08th May & the invoice is raised on 17th May, which arises before TDS remittance date. In that case, the above said calculation may be adopted.
But the correct way is to deduct TDS on advance payment itself.
Good Luck..
29 May 2014
you have to deduct the tds on Rs. 20000/- when you make adv. payment and bal. Rs. 40000 on when you received the bill.
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