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journal entry for TDS

SHEFALI (CA Final student) (54 Points)

17 June 2010  

 since expense is allowable if TDS is deposited by the deducter before due date what journal entry will be passed for expense for which TDS has been deposited after 31st March. Please give journal entry for expense due as well as payement of expense made in next year..



 36 Replies

SIVASIVA (FCA, Future CA) (4930 Points)
Replied 17 June 2010

Reply:

1.  if any expense is booked in the books of accounts before 31st March only TDS Liability will arises.

2.  However, if any advance is paid (say for contracts), then TDS Liable will be there.  But for that expenses will not be booked before 31st march.  The bill when we are getting, only on that DATE it will be booked.  say for example, if advance for contract is paid rs.100000 on 15th March.  TDS should be deducted at 2% or 1% on that i.e. Rs.2000 or 1000.  and if bill date is 10th Apr of the next FY, then it should be booked in the next FY only.

HOPE THIS COULD HAVE SOLVED YOUR DOUBT

1 Like

Jayachandra Naidu (Accountant) (171 Points)
Replied 17 June 2010

Dear Siva sir,

in this case how much amount we shows in form 16 in current year. Next year we getting the bill its cost suppose 150,000/- then we will shown in balance or full amout. please explain me clearly ,

thanking you

Shyam Lal Naik (Service) (6156 Points)
Replied 17 June 2010

Dear Shefali,

 

The journal entry has nothing to do with allowability/non allowability of expenses for IT purpose.

 

The entries are :

31/03/2010

1) Expenses Dr. 

     TDS payable Cr.

On payment date : TDS payable Dr. , Cash/Bank Cr.

 

Expenses are allowable, if the TDS is paid on or before due date of filing return of income w.e.f. AY 2010-11.

 

Dear Naidu,

 

In the current year, in form 16, Rs. 1L will be shown and in next year Rs. 0.50L wil be shown.

 

 

 

 

2 Like

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 17 June 2010

1. When expense will become due :

Expense A/c Dr.

To TDS Payable A/C

To Creditors / Accrued Liability Account

2. When TDS submitted :

TDS payable Dr.

To Bank

3. When Expenses paid :

Sundry Creditors / Accrued Liability Dr.

To Bank A/C.

Aneesh (Pursuing CA) (101 Points)
Replied 17 June 2010

When expense is due

            Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

When Expense is paid

           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

When TDS is Remitted/Paid

           TDS Payable A/c...Dr

                   To Bank/Cash A/c

2 Like

Priya (Financial Analyst) (67 Points)
Replied 17 June 2010

Originally posted by : Aneesh

When expense is due


            Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c

rohit (CA-FINAL STUDENT) (21 Points)
Replied 18 June 2010

                When expense is due


              Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

              When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

              When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c

Mayank (Sr.Accountant) (152 Points)
Replied 18 June 2010

 When expense is due


              Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

              When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

              When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c
 

CA. Abhinay Singh (Manager at Godrej & Boyce.)   (40 Points)
Replied 23 June 2010

Agreed wit Aneesh....

prashant vashisht (Stenographer) (21 Points)
Replied 19 April 2011

shyam give 10,000/- Rs to Ram but ram return him Rs. 8,000. Rs. 2,000/- will be treated as bad debt

 

please tell me how can i pass entry of bad bebt in tally and under which head bad debt can be shown in tally

Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd)   (492 Points)
Replied 20 April 2011

When Loan given to Ram

Ram A/c ( Sungry Drs) Dr                     10000

        To Cash/ Bank                                                10000

When Loan Repaid by Ram

Cash/Bank A/c Dr                                  8000

Bad debts A/c ( in direct expenses)    2000

           To Ram A/c ( Sungry Drs)                           10000

Thanks

R Shriram

Nayan Das (ACCOUNTS MANAGER) (981 Points)
Replied 20 April 2011

When expense is due


              Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

              When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

              When TDS is Remitted/Paid Against 
           TDS Payable A/c...Dr

                   To Bank/Cash A/c

Journal date with in 30.03.2011 so tds will payment 07.04.2011 but 31.03.2011 journal date will provision the TDS so payment the TDS with in 30th april 2011

 

Ankush Rawat (Accountant) (27 Points)
Replied 17 March 2012

Dear Sir,

i ommitted to  pass the journal entry of professional charges but the payment was made by me ,

now i have to pass the journal entry for the month of Aug-11 of professional charges , so plz tel me what the journal would be passed.

Thanking You, 

Vaiibhav Gupta (Founder & Promoter JSR Fincon Inc)   (89 Points)
Replied 22 March 2012

When expense is due


            Expenses A/c...Dr

                   To Suppliers/Service Providers a/c

                   To TDS Payable a/c    

 

When Expense is paid


           Suppliers/Service Providers a/c...Dr

                   To Bank/Cash A/c

 

When TDS is Remitted/Paid


           TDS Payable A/c...Dr

                   To Bank/Cash A/c


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