Doubt on TDS

1. If the aggregate amount of payment made/credited or likely to be paid/credited does not exceed Rs.30,000/- in a financial year (from 1.7.2010). It was Rs.20000 previously.
2. Individual and HUF need not deduct tax at source if they utilize the professional services only for their personal Purpose

Thanks... Its a company.... I want know is not what u have answered but whether we need to make provision for TDS at the time of making provision for professional fees? 

If yes what is the entry?

The relevant T.D.S provision being said by Vipul, there is no need to make a provision for T.D.S if the amount paid/credited or likely to be paid/credited does not exceed Rs.30000 (w.e.f. 01-07-2010)

Tha amount is 100000

yes on rupees 100000 tds will be deducted          

entry for tds will be

xyz ac. -- - - - - -- - - - - dr.

           to tds payable

YES TDS WILL DEDUCTED @ 10% on professional fees under sec 194j

Dear Friend, Tds is liable to be deducted at the time of payment or credit whichever is earlier.  

When u make the provision for the profession fees, it amounts to credit and hence tds is liable to be deducted at the time of making the provision itself.

The entry for the same will be 

Profession fees a/c  Dr      100000

     To  Profession Fees payable a/c        90000

     To   Tds on profession Fees payable  10000

If the Professional  & technical fees amount is exceed 30,000/- during the financial year accordace with technical & professinal fees under sec 194J, TDS to be deducted @ 10%.

The entry will be------------

       Professional fees  a/c                   Dr.                                  1,00,000.00

                     Professional fees payable a/c                                                 90,000.00

                     TDS payable a/c                                                                          10,000.00

                (Being professional fees payable for the month............................)

Raghavendra is correct. TDS has to be deducted on professional charges though you have passed the provisional entry provided the prof. charges exceeds Rs. 30,000/-.