journal entry for TDS

Hello,

I have an querries regarding Tds that i forgot to deduct tds from my client & which we have to pay so i calculated tds on that amount supoose the amount which we paid to client is Rs.100000/- i paid exact 100000 without deduct tds so i calculated tds on 101010/- so it will show u amount of tds rs. 1010/- again i delay to pay the tax so govt will charge interest on tds so what would be the entery to be pass???

Hi prit,

Wat exactly is the Bill amount?1,01,010 or 1,00,000?

If the client is one with whom u have continuous business,u can deduct TDS amount in their next bill.

Interest on TDS doesnt effect the Party. Hence u can directly put the entry :

Interest on TDS a/c             Dr.

   To Bank a/c

Dear akshata 

Thanks for the reply

& the amt bill is 100000/- as i forgot to deduct Tds so i revised the entery like this i took 101010 my bill amount & deduct 1010 from it in shown a 100000 amount after tds. for that i pass payment entery  

company a/c  dr.
to bank a/c

& pass journal entery for tds

company a/c dr 
to tds payables a/c

now i have an querry that what would be the entery for interest  whaich i paid  after 8 mths with payment of tds 

Tds payables a/c dr.  xxx
Interest on tds a/c dr. xxx
To bank a/c                       xxx

is it right entery 

Correct.

The reason i asked u about bill amount is that u will be giving credit of TDS to the party without actually deducting the TDS from their payment..i.e., they will take tax benefit of 1010 without actually paying..
But i suppose that wud be better than Rs. 100000 being disallowed for non payment of tax..

Thx 

But my CA Told me to do like that

agree with above entries

Dear sirs/friends,

I want to know that if I am an individual who provides service to clients and they deduct my TDS so should I also make any entry for it. 

Mr.Vaiivab,

if any Service received you, that is your expenses,

example: "X" Service amount Rs.55,000/-by "A" company.

 "X" Service A/c....Dr. 55,000/-

To, TDS on 94 C...1100/-

To, "A"Company A/C.53,900/-

Deduct 2% TDS if Company otherwise 1% TDS deducted and Lmit 50000/- for Service

accountig entries for tds u/s-194ia

if partily payment made by seller at year end

If tds collected is less and tds paid is is more we can adjust tds paid with tds collected with this entry

Tds payable a/c  debit

 To tds collected a/c 

 To cash/bank

I m right or wrong

tds Form 16 Journal Entry

     Professional charges Received Journal entry194J