LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Doubt on TDS

Rahul (.) (303 Points)

13 June 2011

Dear Friends,

I need to pay professional fees say :10000 Rs to XYZ . Do I need to make provision for TDS while making Provision for professional fees itself OR deduct at the time of payment only.

If I need to make provision for TDS what is the entry.

Please help

Reply
Follow
Share

12 Replies

vipul patel (Ahmedabad) (320 Points)
Replied 13 June 2011

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.
Individual and HUF need not deduct tax at source if they utilize the professional services only for their personal Purpose

1 Like

Rahul (.) (303 Points)
Replied 13 June 2011

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?

naga kiran kumar (Articles Completed) (78 Points)
Replied 13 June 2011

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)

Rahul (.) (303 Points)
Replied 13 June 2011

Tha amount is 100000

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 13 June 2011

yes on rupees 100000 tds will be deducted

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 13 June 2011

entry for tds will be

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

to tds payable

valji (Accounts manager-MBA) (2150 Points)
Replied 13 June 2011

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

1 Like

V RAGHAVENDRA (C.A. Final Student) (62 Points)
Replied 13 June 2011

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

2 Like

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 13 June 2011

Originally posted by : V RAGHAVENDRA
	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

1 Like

Ravindra kumar (student) (87 Points)
Replied 13 June 2011

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............................)

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 14 June 2011

Originally posted by : V RAGHAVENDRA
	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

1 Like

Bhushan (CA Final Student) (21 Points)
Replied 15 June 2011

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/-.