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Accounting for TDS on receipt in Tally

Sandeep (Self Employed) (125 Points)

27 December 2008  

I am a new user of Tally and a beginner in accounts. I need some help in setting up ledgers and posting vouchers to account for payments that I have received from companies where TDS was deducted by them.

For example I bill a company for Rs. 25000 on 1-12-08, they pay me Rs. 22,425 on 20-12-08 after deducting 10.3% tax what ledgers should I set-up for the tax deducted and how do I account in the tally vouchers?

Related to this how do I account for Advance Tax paid. For all taxes paid and deducted by debtors should I create a group "Tax 08-09" or similar.


 11 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 27 December 2008

Entry for Rs. 25000 willbe

Bank A/c                          Dr.           22425

TDS Receivable A/c      Dr.            2575

                               To  Party Name                       25000

1 Like

Shudhanshu Agrawal (Business) (2570 Points)
Replied 27 December 2008

Treatment of TDS Receivable willbe taken under Current Assets in Balance Sheet

Sandeep (Self Employed) (125 Points)
Replied 27 December 2008

Thanks very much. What about grouping of these ledgers? Also can you clarify about Adavnce Tax ledger and group as well.

Related to this, if I activate TDS to Yes when setting up the party accounts under Sundry Debtors accounts I should be able to post directly to the TDS Receivable Ledger when making a receipts voucher. Any idea about this?

Nitesh (service) (136 Points)
Replied 06 January 2009

Dear Sandeep,

 

Tally has basic groups . U need to create TDS RECEIVABLE ACCOUNT 0809 in Current Asset Group. Under Current Asset open TDS RECEIVABLE GROUP and under it open a ledger "TDS RECEIVABLE 0809".

While creating debtors ledger account say yes to tds function. But while entering data in receipt voucher module enter the tds amount manually to the ledger account. Do not post automatically to ledger account. Avoid this way of accounting.This method will be useful during reconcilation of tds certificate received and bank receipt entry containing TDS entry.

It is in vendors ledger if u opt for TDS entry , the tds will be automatically posted to TDS Register.But then u need to get training from Tally regarding how to use tds register. For this u need to define the TDS section for each and every vendor.

Rgds./Nitesh

 

atul mane (accountant) (124 Points)
Replied 13 April 2012

sir after you made a enty of it under current asset but the opening balance will be continue in ledger for all subsequent years so what is the remedy for that can we make the entry after getting tds certificate from the party and could be the enty is like this tds certificate received a/c dr tds receivable0809 a/c cr pleas explain it thank you.

vidya (quirest) (22 Points)
Replied 08 August 2016

how to account 194A receivable ( tds deducted from bank for interest)

 

Mohammad Moinuddin (4 Points)
Replied 28 July 2017

In which vouher of tally these enrty will be passed

Mohammad Moinuddin (4 Points)
Replied 28 July 2017

Entry for Rs. 25000 willbe Bank A/c      Dr.  22425                                                                                                                      TDS Receivable A/c      Dr.            2575                                                                                                                                    To  Party Name                       25000

in which voucher of tally these enrty should be passed

Kartikey Jain (Intern) (2377 Points)
Replied 09 July 2018

Originally posted by : Mohammad Moinuddin
Entry for Rs. 25000 willbe Bank A/c      Dr.  22425                                                                                                                      TDS Receivable A/c      Dr.            2575                                                                                                                                    To  Party Name                       25000

in which voucher of tally these enrty should be passed

Since you are receiving the money, I guess it would be entered in the 'receipt voucher'.

Raushan Kumar (Student) (33 Points)
Replied 19 January 2019

F6: RECEIPT VOUCHER 

Indira Priyadarsini Kota (Student) (590 Points)
Replied 30 January 2021

Atul mane, You can credit the TDS Receivable account at the time of payment of tax or receipt of refund. For a detailed explanation regarding the entries related to income tax provision,, TDS and advance tax , please refer the following forum thread: https://www.caclubindia.com/forum/income-tax-payment-and-journal-entry--217070.asp

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