Tds deducted on provision on 31-mar-15 but actual is more

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This query is : Resolved

Prashant (Querist)

17 September 2015 We had deducted TDS on foreign payments @15% on the provision on 31-Mar-15. Now we have received the actual invoice which is more than the provision. So how do we deal on the TDS part. Do we need to pay TDS on the differential amount without interest or how is it

Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)

17 September 2015 Pay on the difference.

What entry will you be passing for this invoice amount, which is in excess of provision?

Prashant

Prashant (Querist)

17 September 2015 Thanks for the reply

We will be debiting the difference to provision account.

IF we pay the difference, do we need to pay interest, if yes at what rate

Thanks

Prashant

Prashant (Querist)

17 September 2015 Will it make difference if we debit the difference to expense account instead of provision account

Amol S Joglekar

Amol S Joglekar (Expert)

18 September 2015 If you are dating back the entry and increasing the provision for the last year, you need to pay the interest as well.

If you debit to the current year's expenses account, then you need to pay the TDS without any interest

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