SUPPOSE A BILL OF RS 1,00,000/- FROM PARY AND TDS TO BE DEDUCTED AT THE RATE OF 1% AT TIME OF BOOKING
OF ENTRY.BUT MY ACCOUNTANT HAD MADE PAYMENT TO PARTY RS 100000 AND PASSED THE ENTRY IN BOOKS OF ACCOUNTS IN THAT WAY WHAT TO DO
( 1)PURCHASE A/C DR. 100000
TO PATY 100000
(2)PARTY A/C DR 100000
TO BANK 100000
(3) PARTY A/C DR 1000
TO TDS ON CONTRAT 1000
DOUBT
(1) TDS DEDUCTION IS ALLOWED TO MY COMPANY UNDER TAX AUDIT?
(2) ENTRIES PASSED ARE CORRECT?
(3) IF TDS IS RECOVERED FROM PARTY THEN IT IS ALLOWED AS DEDUCTION?
(4) IF TDS IS NOT RECOVERED FROM PARTY THEN I CLAIM AS BAD DEBT?
CAclubindia
