Tds on provision

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 Dear Sir,

Please help me on a query of TDS deducted on Provision.
on 31 Mar 2013, we have deducted TDS on provision of Audit Fees by Debiting Audit fees expenses & crediting TDS account and Provision account. TDS is deposited with Department. Now I would like to know how do we reverse this transaction in books in April 2013. Also please let me know how to adjust TDS when we will get the original bill as TDS is already deducted & deposited with Govt.
Hoping for quick solution.

Regards
Rakesh

Ganeshbabu K

Ganeshbabu K (Expert)
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02 July 2013 1)audit fee 1 lakh
to tds 194J 10000
to audit fee payable 90000

(being audit provision made)

2)audit fee payable 90000
service tax credit 12360
to tds on 194J (tds on st) 1236
to auditor 101124

(being provision reversed as and when bill received)

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