Dear All,
If we A Ltd provide the security service to B Ltd and service amount for the m/o mar rs.10000/- and in the m/o may we got TDS certificate (i.e. 2% on rs.10,000) and not get the payment yet.
what entry we made in our books of account if we does not get payment yet .
Plz clarify
Regards,
TDS Dr. 200
B ltd Cr. 200
In the month of March U must have done the following entry
B ltd Dr. 9800
TDS Receivable A/c Dr. 200
To Income from Services 10000
Now Receiving of TDS certificate does not mean that you have got the Tax amount. You have to adjust the TDS amount with your income tax liability for the year and probably make the following entry.
Income tax Dr.
To TDS Receivable A/c
To Bank A/c
Agreed with Mr.Gupta
in march end when A Ltd . accrue this service income........ then making this enty....
B Ltd. Dr. 9800
TDS A/C Dr. 200
To Gross income( from service) 10000
and when A LTD. receive payment from B LTD.......... then making this entry.........
Bank A/C Dr. 9800
To B Ltd. 9800
A LTD. can adjust TDS receivable from ur income tax liability after receiving tds certificate that is form 16 A.
I think in booking of Income the entry will be as follows:-
B Ltd. Dr. 10,000
To Income from Services 10,000
And
TDS or Advance Tax Dr. 200
To B Ltd. 200
CHECK LATEST NOTES AND AMENDMENTS FOR CA FINAL
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In the books of Bltd
Security a/c dr 9800
TDS a/c dr 200
to A Ltd 10000
When payment made
A Ltd a/c Dr 10000
to bank 10000
In the books of A ltd
B Ltd A/c dr 10000
to Income frm service 10000
When Payment received
Bank a/c dr 10000
to Bltd 10000
Dear friend,
As per your query, you have already raised a bill to your customer. it means you have already posted this entry in your books. Therefore there is no requirment to make a new entry except for TDS Certificate which have you received
Then following entry will be made at the time of TDS Certificate received:-
TDS Receivable Accounts DR Rs. 200
To Customer Accounts. Rs. 200.
yes satish ur entry is also correct but u can compile this entry as well.
what will be the entry if we have tds bf from previous year and we want to reverse the entry. pls tell in both cases company and proprietory concern
AT the time of bill raised
B.LTD .... dr 10000
To income from service 9066
To service tax Payble 934
( if your co. is in service bussines so service tax is applicable. if you not charging service tax then cr amout rs. 10000)
When TDS Certificate Recived
TDS a/c.......Dr. 200
To B.ltd. 200
At The end of year B.Ltd will stand in the sundry Debitor amout Rs.9800
Party has not made payment but issue a TDS certificate.
On receipt of TDS certificate entry will be
TDS receivable Amount Dr
to customer A/c
And entry should be taken in the month of March either on dt 31st march or date as per TDS certificate.
Now you can adjust ur income tax payable amount against TDS receivable.
And customer account as at 31 st march stands at Bill amount less TDS
when custome made payment
Bank/cash A/c Dr
to customer (net amount)
i agree with Mr.gupta and mr.khan
CAclubindia
