TDS entries

HI,

COMMISSION A/C     50000

To Tds payable                             5000

To  party                                        45000

2. tds payable           5000

 to bank                                             5000

3.party                      45000

  to bank                                           45000

this way is my option

Dear Sir.

But what if party is creditor and we need to record the bill no and date for commission or any other purpose for eg. rent . Suppose partry gave me invoice for Rs.50000/- inv no 001 dt. dd/mm/yyyy . Then my first entry would be JV

Rent Ac Dr. 50000

Party Ac Cr.  50000 wherein the party is credited the full bill amount. 

Second entry would be  JV 

party ac Dr. 5000

TDS ac Cr. 5000

Third Entry would be : 

Party Ac Dr.45000/-

Bank Ac Cr. 45000 payment to party 

Fourth entry at end of month / during payment of all collected TDS during that month : 

TDS A/c Dr. (full month TDS amt incl 5000 of the party)

Bank Ac Cr. (---do---) 

by the above entries we would know which party got which bill and what was deducted from the party.
 

All above entries i suggested are for tally software, for any other software depending on the features of that software entry can be modified. 

Also I would like to know whether the original invoice is to be filed with JV or Payment Voucher. Does JV need supporting documents? or a copy need to be filed in JV. Please do repoly. 

2nd Option is preferable. If you have direct entry, then a combined entry should be passed.

By choosing 2nd option for TDS deduction, it will be very easy to bill to bill tracking of vendors.