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TDS DEDUCTION BOOK OR EXCEL

sayad (Executive) (179 Points)

23 April 2021

Can someone help me with below information

In small civil contraction firm if i want to record TDS book or in excel what are the steps i need to follow

For Example

1 } Amount Paid to sub contractor Rs 10000 and 500 Dedcuted as TDS

2} Amount Paid to laborer in Lumsum for work at different site ( 50000 Rs and 1000 TDS )

3}We Receive Payment for the civil work done from the owner ( Received 10000 and TDS deducted from our source 1500 Rs )

and also let me know the rate of TDS to be deducted for paymnet of sub contrators and labourers and also for professional

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3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 23 April 2021

1) Construction expense A/c Dr 10,000/-

To Sub Contractor A/c Cr 9500/-

To TDS Payable A/c Cr 500/-

( Booking of Construction Expense )

Payment entry

Sub Contractors A/c Dr 9500/-

To Bank A/c CR 9500/-

( payment made )

TDS Payable A/c Dr 500/-

To Bank A/c Cr 500/-

( TDS payment to GOVT account )

2) Labour Charges A/c Dr 50000/-

To Labour Contractor A/c Cr 49000/-

To TDS Payable A/c Cr 1000/-

( Booking of Labour Charges )

Payment Entry

Labour Contractors A/c Dr 49000/-

To Bank A/c Cr 49000/-

( Payment made )

TDS Payable A/c Dr 1000/-

To Bank A/c Cr 1000/-

( payment of TDS to GOVT account )

3) Trade Debtors A/c Dr 10000/-

To civil work ( Sales ) A/c Cr 10000/-

( Booking of Sales entry )

When payment received after TDS Deduction

Bank A/c Dr 8500/-

TDS on C. work A/c Dr 1500/-

To Trade Debtors A/c Cr 10000/-

( Receipt of Payment TDS )

For TDS rates for F.Y 2021-22 you refer Income Tax web site . www .Income Tax .gov .in

Why GST not applied on Labour charges , Construction Expense , ?.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 23 April 2021

1. Contractor payment a/c dr 10000
to Sub-contractor a/c 9500
to TDS payable a/c. 500

Sub-contractor a/c dr 9500
to Bank a/c 9500

TDS payable a/c dr 500
to Bank a/c 500

same entry should be done for 2 and 3 also according to nature of payment.

For professional fees TDS should be deducted u/s 194J @ 7.5%

For a payment is being made to any resident sub-contractor in pursuance of a contract with the sub-contractor for carrying out, or for the supply of labor for carrying out, the whole or any part of the work undertaken by the contractor, TDS shall be deducted @ 1% on the gross amount of receipt at the time of payment