Private contractor entry in tally

if we are paying to a private contractors without gst bill like the contractors doesn't have a company and doing work as a freelance something...i do we should record those entries in tally and what amount of percentage should be calculated and please give full details please.

thank u in advance.

Replies (14)
Quick Summary
Discussion on accounting entries in Tally for payments made to private/freelance contractors without GST invoice. Entries include booking under contract expenses, liability to contractor, bank payment, and TDS applicability u/s 194C. Contractor expenses treated as indirect expenses in P&L.

sorry  for miss interpretation the query earlier . 

Yes , you  have record  these  transitions , in the books of  accounts as a part  of  business .  

Also  check  regarding  TDS  applicability under  section 194 (C)  of the Income tax act - ( payment  to contractor )    

I mean if a person is ABC so the entry will be 

By ABC A/c Dr 

To contractor expenses Cr

Or

By ABC A/c Dr

To bank A/c cr

And if the second entry is correct then the ABC comes under which head

This ABC preson is an individual 

Contract Expenses A/c Dr
To ABC A/c Cr
( Booking of an expense)

ABC A/c Dr
To Bank A/c Cr
( payment entry)

ABC A/c will be under Trade creditor, Current Liability, Balance sheet.
@ Uday Rao,

Are you payer or recipient of service ?
He is receiving services from ABC .
@ Uday Rao,

If you are the recipient of service then it is expense and you should correct the first entry and it is wrong
Accordingly I have corrected..........
👍🏻👍🏻👍🏻
If TDS is applicable for Payment to Contractor then you pass entry.

Contract Expenses A/c Dr
To ABC A/c Cr
To TDS payable. A/c Cr
( Booking of an expense, TDS payable)

Contractor expenses account comes under what head...?

Is it under indirect expenses 

Yes , Indirect expenses, Profit and Loss Account.
How much is the amount?

What is the quantum of turnover/ expected turnover of contractor ?

If it exceeds threshold limit then GST registration is required and GST has to be charged

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