Posting entry of ITDS

We had raised a couple of consultancy services tax invoices on a proprietorship company, but both the times the company while making paying to us did not deduct TDS and remitted the full invoice amount to our company bank account. My question is - should I post a ITDS entry in my books or make a provision of this amt payable to that company if that company claims money from us for TDS deductible ? Or is there no need at present to post any such entry now in my books of accounts ? 

Request please clarify.  Thanks.   

Replies (5)
Quick Summary
This discussion clarifies the need for ITDS (Income Tax Deducted at Source) entries when a proprietorship company fails to deduct TDS on consultancy services. The advice given is to first verify if the proprietor is legally liable to deduct TDS. If they are, it's recommended to inform them to deduct and adjust the payment. If not, no immediate provision is necessary in the books of accounts.

Firstly, you need to check whether the proprietor is liable to deduct TDS?

If yes, better inform him/her to deduct TDS and adjust the payment accordingly. Otherwise, no need to make provision at this stage.

Ok got it. Thanks for your reply. 

My pleasure.                               

If Proprietorship Firm/Company's Books Audited Under Section 44AB Then only Proprietor Liable to Deduct TDS

Irrespective of Audit, TDS deduction is applicable to Proprietor,HUF if business Turnover exceeds 1 crore or professional receipts exceeds 50 lakhs

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