TDS on Contractors

This query is : Resolved

Yasmin Salim Shaikh (Querist)
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14 August 2009 There was a disallownace u/s 40(a)(ia) due to non deduction of TDS on Payment to Contractor during the F.Y. 2007-08.
This TDS was not even deducted & paid during the financial year 2007-08 & 2008-09 so it was not allowed in the respective Assessment years.

The said TDS was deducted and paid to the credit of Govt. during the F.Y. 2009-10

I Wanted to Confirm -
Q1)what will be the Accounting Entry for the same?
Q2)Whether we will debit the party A/c and issue the TDS Certificate for the same?
Q3)What will be thw Period on the TDS certificate?

Thanks & Regards

raghunandan

raghunandan (Expert)
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14 August 2009 TDS certificate is to be issued during the CY pertaining to the PY in which the amounts was pad.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 August 2009 Agree with the expert.
Accounting Entries- In Journal

Contractor's A/c Dr xxxx
To TCS -Contract A/c xxxxx

For payment of TDS and receipt from the
contractor make entries in cash/bank book

on Payment to Govt.---
TCS -Contract A/c xxxxx
To Cash/ Bank
on Receipt from Contractor
Cash/ Bank Dr
To Contractor's A/c

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