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amit kumar (Student CA Final )     16 December 2013

How to treat tds in case of late receiving of bills from par

If accountant receives bills later the month to which it relates then how to Treat it in the books.

Like bill of MAY Received in AUGUST then how to book it as the expense is of MAY and if we treat in books it on May then we have to pay interest on it so pls guide me



 18 Replies

CA. Kuldeep Singhi

CA. Kuldeep Singhi (Entrepreneur)     16 December 2013

Bro if in your company receiving date is written in bill then you can book it in august otherwise make a system
amit kumar

amit kumar (Student CA Final )     16 December 2013

Bro I want to knw is such case how to deal with dis like wether to record that expense in May Or august for TDS purpose n interest calculation on it bcz if client book it on May then he have to.bear interest till august so how to deal it
GAURAV SHRAWAGI

GAURAV SHRAWAGI (NAGPUR)     16 December 2013

u hv to book the expense in MAY month itself

amit kumar

amit kumar (Student CA Final )     16 December 2013

But if i record it in MAY then i have to bear the Interest on late deposit of TDS AND its not my mistake as i have received bills later due to some reasons...
GAURAV SHRAWAGI

GAURAV SHRAWAGI (NAGPUR)     16 December 2013

u should have made provision of estimated amount at end of MAY...sry but u hv 2 pay int
amit kumar

amit kumar (Student CA Final )     16 December 2013

But if i record it in MAY then i have to bear the Interest on late deposit of TDS AND its not my mistake as i have received bills later due to some reasons...
amit kumar

amit kumar (Student CA Final )     16 December 2013

Can i book it in august as party had send it in August and i came to knw it in august and while booking it in books i can write received late
DS Sajwan

DS Sajwan (MBA)     16 December 2013

First of all its not your fault to received bill in August although Bill date is May. So don’t worry.

Make some formalities by your self 

1. Write the receiving date on Bill i.e. Received on ....... (Signature of Authorised person of who                                                                                      dealing with that party, or can by your                                                                                    self also if not possible)

2. Book that Bill in Receiving Date and TDS deduct as per Bill you will be not need to pay        interest

3. File it as per Booking in Account Books.

 

 

DS Sajwan

DS Sajwan (MBA)     16 December 2013

First of all its not your fault to received bill in August although Bill date is May. So don’t worry.

Make some formalities by your self 

1. Write the receiving date on Bill i.e. Received on ....... (Signature of Authorised person of who dealing with that party, or can by your self also if not possible)

2. Book that Bill in Receiving Date and TDS deduct as per Bill you will be not need to pay interest

3. File it as per Booking in Account Books.

 

amit kumar

amit kumar (Student CA Final )     16 December 2013

Thnx to all for your valuable suggestion n ur support...
Santosh Shetty

Santosh Shetty (IPCC, Asst Manager)     16 December 2013

You can book the bill in Aug month provided you should mention the receiving date on the bill. Meanwhile if you had paid any advance payment to the said party in May (single payment 30000 or aggregate 75000 then your tds liability would arise at the time when you makr the advance payment against that bill.
Ravinder Kumar

Ravinder Kumar (CEO)     17 December 2013

One practical problem also : In this case if it is wct bill and also I have to take the input of vat in the correspondence month I.e. may and bill recd in june or august then I have to bear intetest on tds. Any solution to that?
Ajay

Ajay (CA Job)     17 December 2013

Dear Amit

In your case, whether you account in May or August does not matter as they fall within the same financial year. As for TDS implication, you can account in August and pay the corresponding TDS by 7th September.

However, if you MUST account the bill in MAY itself, for monthly MIS or quarterly reporting purposes, there could be 2 situations,

1. You know the exact amount for the bill in May - If so, credit the party account (or a provision account, if you consider such amount more as a provision/estimate than as an expense) with the known bill amount and pay the TDS for the same, latest by 7th June. Here, there is no problem of interest on late remittance of TDS. Later, when you receive the bill in August, book the bill against the provision by crediting party account and debiting provision account and pay off the party net of TDS. Report this amount in the Q1 TDS return.

2. You are not sure of the exact amount of the bill in May - then, a suggestion could be to make an estimate of the bill based on the available information, make a provision for that amount and pay the TDS for the provision made latest by June 7th. Report this in Q1 TDS Return. Thereafter, when you actually receive the bill, account the same by debiting the provision and crediting the party account. If the actual bill received in August is more than the provision made in May, account the excess amount as expense and pay the TDS for the differential amount latest by 7th September. Here again, i dont beleive there will be problem regarding the interest on late remittance of TDS. Report this differntial amount in Q2 TDS Return. 

Correct me if I am wrong anyone!

Regards

Ajay

 

amit kumar

amit kumar (Student CA Final )     17 December 2013

Thnx Ajay ur absolutly ryt thnx for ur valuable suggestion

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