journal entry for TDS

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

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

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.

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.

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

                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

 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
 

Agreed wit Aneesh....

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

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

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

 

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, 

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