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TDS Adjusstment

TDS / TCS 215 views 1 replies

One of our Client on 23.04.21 Paid Rs. 60,000.00 to his service provider after deducting Rs.450 (0.75% By Mistake In Place of 1%) as TDS by Cheque.

But We asked him to deposit Rs.600 (1% @ 60000)as TDS deducted in IT Government Bank account (For 1st QTR.), and to adjust the difference amount (600-450=150) in his next transaction with such service provider.

On 15/08/21 He paid again to same service provider Rs.10,000 in cash. (Without TDS)

&  

On 18.08.21 Rs.60000 by cheque after deducting TDS Rs. 850.00 (100 (1% @ 10000) + 600 (1% @ 60000) + 150 (Old Difference))

How to Pass Its Accounting Entries ????

Replies (1)

Following  entries  in the  Books  of  your clients . 

1)  on  23-4-21 

     Service provider     A/c    DR           60000/- 

     To Bank                 A/c    CR                              59550/- 

     To TDS Payable   A/c    CR                                   450/- 

(  Paid  after  deducting  short   TDS  ) 

 

2)   on  15-8-21 

     Service  provider    A/c    DR                10000/- 

     To  Cash                 A/c    CR                               10000/- 

( Payment  made for service providing ) 

 

 3) On  18-8-21 

     Service Provider     A/c    DR           60000/- 

     To  Bank                 A/c     CR                                   59200/- 

     To  TDS Payable   A/c      CR                                      800/-

(  Payment  made to service provider after deducting  TDS ) 

 

Note - You can not pay  in Cash more than 10000/-  as per Income Tax act  , same will be disallowed . 

 


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