VAT form 402

This query is : Resolved

survesh (Querist)
Follow

25 September 2009 Dear Friend

A company has deducted TDS on Vat for a Civil contractor Bills Rased but the Civil Contractor has not Charges or Rased bill with Vat.Where Should I Account TDS on Vat In Current Asset OR as a Direct Expense and can the TDS of Vat can be clamed for Incometax

Please Say

CP Ram

CP Ram (Expert)
Follow

25 September 2009 If you have received payments for civil contracts after deduction of WCT-TDS, then following is the accounting treatment for the such TDS amount:

1) WCT - TDS Receivable A/C Dr. (Loans & Advances - Current Assets)
----To Debtor A/C
(Being WCT-TDS deducted by party on Civil contract).

2) VAT / CST payable A/C Dr.
----To WCT - TDS Receivable A/C
(Being WCT-TDS credit utilised for payment of VAT / CST).

Note:
1) You cannot claim WCT-TDS against your Income Tax Liability...

2) You can claim such TDS only against your VAT / CST Liability...

3) If you are an Unregistered Dealer, then you can directly expense out such TDS amount..

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