Accounting entry of 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 (3)

A. If its full and final settlement by I.T. Dept.:

Bank A/c Dr.

To T.D.S. Receivable A/c

For Bal. amt. in T.D.S. Receivable A/c (which is not recd.):

P & L A/c Dr.

To T.D.S. Receivable A/c

 

 

B. If the balance amount is still receivable by us then the above second entry would not be passed and T.D.S. Receivable A/c would show Debit balance to the extent of less amount received.

Provision / Due Entry:
---------------------
Dr. TDS Receivable A/c (Personal A/c - Dr.the Receiver)
Dr. Interest Receivable A/c (Personal A/c - Dr. the Receiver)
Cr. TDS Refund / IT Refund A/c (Nominal A/c - Cr, Incomes & Gains)
Cr. Int. on TDS Refund A/c (Nominal A/c - Cr, Incomes & Gains)

Receipt Entry
------------------
Dr. Bank A/c (Real A/c - Dr, What comes in)
Cr. Interest Receivable (Personal A/c -  Cr the Giver)
Cr. TDS Receivable (Personal A/c - Cr the Giver)

Closing Entry:
------------------
Dr. TDS Refund / IT Refund A/c 
Dr. Interest on TDS Refund A/c
Cr. Profit & Loss A/c

Note:

As per AS9 - Revenue Reconition, Revenue should be recognised when there no significant uncertainty exist at the time of Ultimate Collection.

Hence, Irrespective of the Receipt, due entry or provision entry should be passed for the compliance of AS9

Originally posted by : Mukeshh Agarwal

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.

 Simple entry for your transactions in Tally.

Bank A/c Dr.

   To TDS Receivable A/c.

   To Interest on TDS A/c.

 

The remaining amount that you did not recieved will remain outstanding in the Balance Sheet.

 

As per my experience, the difference occurred due to calculation difference by you and the assessing officer.

 

You can go to your city's income tax department and resolve the issue.

 

Creator and Author - www.tallyschool.com

 

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