Tds entry

As per section 194C TDS is required to made at the time of payment or credit whichever is earlier.  As advance is being made to the persons, so TDS needs to be made at the time of paying the advance. However it needs to be ensured that the requirement for making TDS towards 194C is that the single payment shoudl exceed 30000 or aggregrate of payment shud exceed 75000, then only TDS needs to be made.

At the time of raising each bill you will need to check if the single bill exceeds Rs 30k or if it does not then aggregrate bills shud exceed 75K.  After ensuring this deduct the balance TDS.

Post the following entries for making advance payment and TDS tehreon.

Supplier A/c  Dr                xxx

To- TDS  Payable                                  xxx

To-Bank                                                  xxx

For making paymetn of TDS to Govt post following entry

TDS Payable  Dr         xxx

To-Bank                               xxx

Thanks Giridhar, But what  if the Balance Labour Payable to the Babu for eg.: TDS deducted on advance pymt. of Rs. 40,000/- say 1% for the month of April 2012 and paid the balance amt. For the Next month the Bill has raised for the Rs. 30,000/- and TDS deducted @ 1% on the same. The entry has been booked as follows:

Labour Chgs. A/c. Dr.       Rs.30,000/-

To Babu A/c.           Cr.       Rs.29,700/-

To TDS Payable    Cr.       Rs.   300/-.

so while making the payment to the babu, the amt. has to be paid as rs.29700/- as tds has been already deducted. My question is while booking for the Labour charges (the same entry continues for every month) and TDS deducted on the same,making the balance payment TDS deducted has to be deducted.

tds to be deducted on payment or credit whichever is earlier subject to above mentioned rule.

tds is also to be deducted on balance payment after adjusting advace (if applicable)

in the above eg. if advance payment is made for rs.40000 and labour charges bill raised for 70000 than only on balance payment i.e. on 30000 tds to be deducted.

the actual payment to supplier would be

39600(for advance after deducting tds)

29700(balance payment)

My question. I purchased stationary from zair enterprise amount is 98000 in year ispe tds lagega?

TDS is not requried to be made on materials purchased its only on services rendered

you have to do tds on 40000 if you paying the money at one go as it is exceeding payment of 30000. in the next payment, you do not have to do tds as it is 30000 and not exceeding 30000. also total is not exceeding 75000 and thus no need to do tds on balance 30000. better you pay him 28000 initially and 12000 next day.. thus all payments will be below or equal to 30000 in order to save the hassle of tds and your aggregate payment does not exceed 75000

What is process of. Tds on salary. How to calculated it