Entry for TDS excess paid

TDS 3751 views 11 replies

Can any one Help me regarding the entry of TDS excess paid...>>

If the party has paid excess TDS. and they wanted to write it off, is it possible to write if off in Profit and Loss a/c

 

Thank You in Advance

Salah

Replies (11)

You can write it off but will not be allowable as an expnditure.

Yes you can charge it off to P&L account but that expenditure will not be allowed under income tax Act.

it seems that party has deducted and paid excess tds than required and paid lesser amt to party than required......for eg:b ill amt=100 tds required to be deducted =2.payment required to be made=98.tds deducted by your client=3.payment made to the party=97.if this is the case then i dont think excess tds needs to be w/off.if however ur client has deducted and paid tds of 3 and payment made to party is also 98,then the excess rs 1 can be adjusted by ur client with the party in future BILLS as client will now issue a tds certificate of 3rs instead of 2 rs to the party who will also be able to claim tds accordingly.

I HOPE U GOT IT.

also the view opined by above members that  excees tds is not allowed as exp even if dr to p and l a/c is also correct.but i dont think after reading my above article u need to dr excess tds paid to p and l ac.instead dr it to the parties account in respect which excess tds is paid

Originally posted by : Kamal Jain

You can write it off but will not be allowable as an expnditure.

Yes it can be written off. But not allowed as expenses.

I agree with all of you but we should think from the point of view of client.

at we can do is to tansfer that Excess TDS paid to TDS Recoverable Account and do any of the following:

1) Either file a refund application. ( Which you will be never going to recieve. )

OR

2) Give Excess credit to the party by issuing Form 16A and take the Reimbursement. ( This is a very commonly followed practice ).

I agree with Rahul

Is it possible to claim refund from the department, if yes what is the procedure ? 

agree with kamal sir              

 

 

     

you can adjust the amount paid excess as tds in next quarter but it is not allowable to deduct as expenses.


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