Tds deposited by book entry (tds return conflicting issue)
This query is : Resolved
25 May 2013
Please go through the below mentioned points which were collected from various sites via google-
1. There are many Government Departments who are maintaing Government Accounts also. They maintain Income Tax as head of account in their books. When they have to deduct TDS, they simply debit the expense or party and credit to Income Tax head. This is called TDS by book entry and in this system, no physical movement of cash or cheque takes place. In TDS return, we are required to furnish voucher No. through which tax is adjusted and date of voucher. BSR code of bank branch is not required. TDS deposit by book entry relates to certain govt ministry who does not depost
2.TDS by cash but only adjust the same by debiting/crediting to HO a/c. Defence Ministry is one of such ministry.
3. 'TDS deposited by book entry' is a concept for deposit of Government authorities/agencies etc., where all the transactions are through treasury itself. Thus, when these entities, makes payments to vendor from treasury and deduct TDS thereon, then instead of separately paying the TDS again to treasury, simply the amout of TDS is recorded through book entry.
also refer the following link:
https://nexgengroup.in/webtds/webTDS/faq.html
after the above points and link data it could be concluded from my side that in challan sheet (tds return) paid by book entry should be NO for non-government assessees & in annexure sheet paid by book entry or otherwise should be yes.
The above conflict have been complexed after one of the AO contended w.r.t demand raised by department that the demand has been raised due to selection of "NO" in paid by book entry or otherwise.
This is my understanding of the matter and I would request to correct me, if wrong.
1. There are many Government Departments who are maintaing Government Accounts also. They maintain Income Tax as head of account in their books. When they have to deduct TDS, they simply debit the expense or party and credit to Income Tax head. This is called TDS by book entry and in this system, no physical movement of cash or cheque takes place. In TDS return, we are required to furnish voucher No. through which tax is adjusted and date of voucher. BSR code of bank branch is not required. TDS deposit by book entry relates to certain govt ministry who does not depost
2.TDS by cash but only adjust the same by debiting/crediting to HO a/c. Defence Ministry is one of such ministry.
3. 'TDS deposited by book entry' is a concept for deposit of Government authorities/agencies etc., where all the transactions are through treasury itself. Thus, when these entities, makes payments to vendor from treasury and deduct TDS thereon, then instead of separately paying the TDS again to treasury, simply the amout of TDS is recorded through book entry.
also refer the following link:
https://nexgengroup.in/webtds/webTDS/faq.html
after the above points and link data it could be concluded from my side that in challan sheet (tds return) paid by book entry should be NO for non-government assessees & in annexure sheet paid by book entry or otherwise should be yes.
The above conflict have been complexed after one of the AO contended w.r.t demand raised by department that the demand has been raised due to selection of "NO" in paid by book entry or otherwise.
This is my understanding of the matter and I would request to correct me, if wrong.
14 February 2018
HI sumati,
I have few queries relating TDS by way of book entry
Please give a call or whatsapp at 7569989230 or provide your contact details
I have few queries relating TDS by way of book entry
Please give a call or whatsapp at 7569989230 or provide your contact details
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