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Entry for TDS excess paid

Salah (CA Finalist....!!) (40 Points)

08 September 2010

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

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11 Replies

Kamal Jain (FCA) (200 Points)
Replied 08 September 2010

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

CA MARUTHI GANDHI (JOB) (60 Points)
Replied 08 September 2010

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

Vicky (CA, LCS,MCOM,) (136 Points)
Replied 08 September 2010

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.

Vicky (CA, LCS,MCOM,) (136 Points)
Replied 08 September 2010

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