Accounting entry for tds refund

Hi!

Please tell me the accounting adjustment entry for lesser TDS Refund Received , details given below:

Status- JV / AOP

TDS (AY:2012-13) - 12,98,186.00

Refund Received in FY 2013-14 - 11,42,280.00

Interest received - 79,950.00  

 

Thanks in advance.

Replies (8)
Dr Bank ( total amount received ) Cr Interest on I.T Refund 79950 Cr TdS ( A.Y 2012-13 ) ( balancing figure )
Agree with Raj

 

BUT, WHAT ABOUT THE DIFFERENCE FIGURE BETWEEN ACTUAL TDS AND I.T. REFUND RECEIVED   I.E.   12,98,186 - 11,42,280 = 1,55,906

WHAT WILL BE THE ACCOUNTING ENTRY FOR 1,55,906/- ??

 

 

Sir, in that case u claim whole amount of tds as refund?

The answer would be different depending upon the situation.

(A) - If the lesser refund is on account of higher tds rate applied during assesment the same and the same is recoverable from deductee ;-

Vendor Dr (Differential Amount)

TDS Refundable Cr

(A) - If the same is not recoverable from deductee ;-

Expenses Dr (Write off Differential Amount)

TDS Refundable Cr.

Hope this clarifies...

 

I would conflict a bit with the agrument placed by Mr. S K Batra.

 

If TDS is receivable from party then

   Party   -- Dr (Difference of TDS Amt)

    TDS Receivable   - Cr (Difference of TDS Amt)

 (This enrty will make TDS Receivable ledger as NIL and create a debtor in the name of Party from which the diff amount of TDS is receivable)

 

If TDS is not recoverable from party then

    Capital ---Dr (Difference of TDS Amt)

    TDS Receivable   - Cr (Difference of TDS Amt)

(This entry will make TDS Receivable ledger as NIL and the difference of TDS amount is reduced from capital as it is not allowed as expenses in PL Account)

 

The difference in TDS Amount is not allowed as expenses but it is not an expenses rather a type of bad debt of Income Tax which is not recoverable. Difference of TDS is caused because of some miscalculation on the part of assessee hence it is not allowed as expenses.

 

I am not 100% sure on this concept but i feel it to be more logical

Hi all, please find below mentioned details and help me on accounting entries part Folllowing are account balance of ledgers as under -  1. IT refund receivable (AY2011-12) - 8291.00 Dr balance 2. Provision for IT (AY 2011-12) - 2099056.00 Cr balance 3. Refund as per ITR - 37618.00 4. Refund received - 118996.00

 

Hi friends,

How to pass journal entry income tax refund after tds paid....

 

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