Ad-Free CAclubindia and daily updates on your mobile. Subscribe Now!

TDS DEDUCTED BY PARTY

KVP (ACCOUNTANT) (50 Points)

19 February 2009

Dear All Friends

I have issued Labour bill of Rs.25000/-. My customer Deducted TDS on Labour Bill @ 2.06%. Now I want to know, Wwhich JV passed I have to passed in my A/c Book?

If I take as a Advance Tax in Balance Sheet. But End of year Which JV I should passed in my A/c Book (Proprietor Firm)?

Please reply as soon as.Thanking you in advance.

Regards

KVP

Reply
Follow
Share

7 Replies

B KANRAR (SERVICE) (57 Points)
Replied 19 February 2009

JV WILL BE AS PER FOLLOWING:

Customer A/c Dr. 24485

TDS Receivable Dr. 515

To Labour Charges Received Cr 25000

Adjusment entry only done from its assessment order pass from I T Department.

Just account the amounts of TDS which u received during respective year.

Upgrade to CAclubindia Pro. Subscribe Now!

CA.E.Deepan Chakravarthy (CA and CS Executive) (462 Points)
Replied 19 February 2009

Hello KVP,

Please find attached file for your perusal

Regards

Deepan Chakravarthy.E

Attached File : 1 hello kvp.doc downloaded: 391 times

KVP (ACCOUNTANT) (50 Points)
Replied 19 February 2009

Originally posted by :Deepan Chakravarthy.E
"	Hello KVP, Please find attached file for your perusal Regards Deepan Chakravarthy.E	"

KVP (ACCOUNTANT) (50 Points)
Replied 19 February 2009

Originally posted by :Deepan Chakravarthy.E
"	Hello KVP, Please find attached file for your perusal Regards Deepan Chakravarthy.E	"

Thanking you for your response immediately.

As per your JV Income Tax A/c Dr and TDS Receivable A/c Cr. when I will become liabilty of Income Tax in A.Y.2009-10. Am I right?

As per my point of view If I show Income Tax A/c Dr. in P&l A/c in Next year Accounting Period i.e.2009-10. As per I.T rules it become disallow my Income tax entry and I want to pay more Tax in this entry. Bcz. this entry such not of F.A.Y.2009-10.

Can I take this entry into direct capital A/c when I paid Income?

Capial A/c Dr. 10515

To TDS Receivable A/c Cr.515

To Bank A/c Cr 10000

Regards

KVP

(Guest)

tds of one assessment year will not be adjusted with income tax of other assessment year...................

for example in assessment year 08-09 your toatal income tax liability is rs 10000 and your tds is Rs. 5000 then you have to pay only 5000 extra..

incase if your total income tax liability is Rs.3000 then you will not requierd to pay any tax

But in both case you have to show your tds in the balance sheet in asset side of Rs.5000 till your assesment get completed...

when your assessment will complete you have to transfer TDS amount Of Rs. in your capital account....

If you get any refund from I.T department then you will credit this directly to capital account but interest on refund will go to p/l account since its taxable

Upgrade to CAclubindia Pro. Subscribe Now!

KVP (ACCOUNTANT) (50 Points)
Replied 20 February 2009

Originally posted by :Md.Mosharraf Ali Raza
"	tds of one assessment year will not be adjusted with income tax of other assessment year................... for example in assessment year 08-09 your toatal income tax liability is rs 10000 and your tds is Rs. 5000 then you have to pay only 5000 extra.. incase if your total income tax liability is Rs.3000 then you will not requierd to pay any tax But in both case you have to show your tds in the balance sheet in asset side of Rs.5000 till your assesment get completed... when your assessment will complete you have to transfer TDS amount Of Rs. in your capital account.... If you get any refund from I.T department then you will credit this directly to capital account but interest on refund will go to p/l account since its taxable	"