Tds deposit on full bill value

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gupta

Accountant

204 Points Posted on 15 March 2017

Dear Sir,

I am facing the following problem, pls advice how to come out :-

We got a professional charges bill from our vendor amounting Rs. 5,75,000/-( 500000+ ST15%) in the month of Aug-16 and we credited the bill in our books and taken ST input also.At the time of book entry we have deducted 50000/- as TDS .We have paid 50% to the party after deducting the TDS amount ( Which is 10% of 5,00,000) and deposited the TDS amount also and filed TDS return also. Now the work is not approved by our customer so we have mutually agreed that we will pay only 50% of the bill value ( i.e. what we have already paid ).Now my question is ----- should I required to file the revised return ? or keep it as it .If I keep it as it --- my reversal journal entry showing a difference with the TDS amount, can I pass as written off. What to do .

The supplier is not objected about deduction of TDS on full value as he has no loss.

Pls guide.

Regards

Gupta

Replies (3)

Guest

Posted on 15 March 2017

IF SUPPLIER IS READY FOR DEDUCTION OF FULL TDS WELL

BUT IF HE IS NOT INTERESTED IN TDS RETURN HIS EXCESS MONEY

REVISE TDS RETURN PASS RESVERVE ENTEY FOR ADJUST

TDS AMOUNT

Manoj BG

Tax Professional and in Service

1637 Points Posted on 16 March 2017

Hi,

If supplier is not objecting to TDS deduction on full value, do not revise the TDS return as supplier is eligible to claim full amount of TDS deducted and deposited by you. All you need to ensure that you have deposited whatever TDS deducted on his account, same is being reflected in quarterly TDS return and Form 16A has been issued to supplier.

Thanks and Regards,

Manoj

Mahesh Babu

CA Final

278 Points Posted on 26 March 2017

Mr. Gupta,

You need to file the revised TDS returns, as the supplier was aggreed only 50% of the bill Value (i.e. 2,50,000/-), you will book the Professional charege expenses as 2.5L in books but in TDS return you are claiming 5L as Professional exp., this will not match while showing in the Form 3CD for TDS deducted column.