Tds refund entry

This query is : Resolved

CMA RAVI (Querist)
Follow

10 October 2012 What is correct entry of TDS REFUND?
One of our clients paid us for our services without deducting TDS..so after a month he submitted FORM 16A on that basis I arranged payment. And passed this entry. TDS RECEIVABLE A/C.......Dr.
To bank A/c. But when I saw previous entries by different accountant TDS RECEIVABLE A/C..........Dr
To BILLS PAYABLE A/C. And then BILLS PAYABLE A/C......dr
To bank. My question is hich is correct entry and the other entry routed through BILLS PAYABLE

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

10 October 2012 For your case your entry i.e TDS receivable a/c dr
To Bank a/c is correct
Because of you paid your funds to TDS to the deductor so it is correct.

And TDS receivable a/c dr
To bills payable a/c uses at the time of TDS deducted in the bill payment to use. But in your case first bill paid with out deduction of TDS it is the risk of the deductor but after that by his request you paid such TDS amount returned. So your first entry is correct.

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

10 October 2012 Hai, if you don't mine i want to know your qualification if you free to say please tell me.

OM SAI SRI SAI JAI JAI SAI

CMA RAVI

CMA RAVI (Querist)
Follow

10 October 2012 Mr. XPERT first let me add you up haha

CMA RAVI

CMA RAVI (Querist)
Follow

10 October 2012 @dintakhurthi but I still didn't get the point of bills payable...tds deducted in bills payment to use means..?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

10 October 2012 I.e means the entry of
TDS receivable a/c dr
To Bills payable

Passes at the time of TDS amount deducted in the bills payable.

OM SAI SRI SAI JAI JAI SAI

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now