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Tds computation

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Hiren

Trainee

30 Points Posted on 17 February 2015

i am working in Finance-Investment advisor company as accountant, I have raise bill of one of the my client on 31 Dec 2014 for rupees 50,000+6,180 service tax= 56,180 and client got this bill on Jan 15, 2015, and client made payment on Jan 20, 2015. now question is how much TDS should be teducted and on which basis teducted. whether on date of bill or date of payment. as per rules credit and payment whichever is earlier but in this case what to do?? becasue my client Q-3 return already filled..

and as per our company policy i cant reversed this bill or change the date of bill

Can you please help me anyone to sortout this problem.

Replies (1)

Arif Ali

Apt Co Advisory

1230 Points Posted on 17 February 2015

Hi Hiren,

as you mentioned that you hae raised the invoice to client and client made payment to your compnay. then in this situtation you have debited to client. then here TDS provision is not applicable. TDS provision is applicable on client. the client will deduct the TDS on cedit your account. as you mentioned that your client is received on 15.01.2015. then he will deduct the tds on credit. it may be either 31.12.2014 or 15.01.2015 whichever is company policy. then they will treat accodingly.

further now come at your problem. In this case would have received the less payment by dedcution of tds. then you would pass a entry follow:-

Bank/cash .... Dr. by received amount

TDS receivable Dr. by TDS deducted amount

To Client A/c

so you have nothing problem to file the return and showing this in return. because nothing your liability here.

and TDS will be deducted @ 10% +cess by exclusion of service tax amount i.e. on 50000.