Tds is adjustable/refundable or not?

Page no : 2

CA Manish (Job) (5264 Points)
Replied 27 November 2012

Yes it is possible you can show excess in challan.

1 Like

CA Manish (Job) (5264 Points)
Replied 27 November 2012

Originally posted by : ANJALI NEGI
	In the books of ABC and co. 1.) XYZ and co. Dr. Rs. 5,00,000 To Bank a/c Rs. 495000 To TDS Payable A/c Rs. 5000 2.) TDS Payable A/c Dr. Rs 5000 To Bank A/c Rs.5000 In the books of XYZ and Co. 1.) Bank A/c Dr. Rs. 495000 TDS Receivable A/c Rs 5000 To ABC and Co. Rs. 500000 2.) Income Tax payable A/c Dr. Rs 5000 To TDS Receivable A/c Rs 5000 In my opinion, above entries should be passed in the books of both the parties. Plz correct me if incase iam wrong,, and do specify the reason while correcting...

All the entries are correct pls give the entries at the time of cancellation of contract.

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 27 November 2012

Cancellation entries-

In the Books Of ABC& Co.

Bank Dr. 500000

To XYZ& Co. 500000

In the Books Of XYZ&Co.

ABC&Co. Dr. 500000

To Bank 495000

To Income tax payable 5000

CA Manish (Job) (5264 Points)
Replied 27 November 2012

Why you are not reversing TDS at the time of cancellation of contract.

Sanjay Jamod (Artical) (44 Points)
Replied 27 November 2012

As Per Your query

the TDS is adjustable and refundable for the deductee and it can claim it. But the deductor can not claim that.

as per query xyz & co. have to refund all the amount i.e. 500000 to abc & co. and for the deductee xyz co TDS is refundable and it can adjust against tax laibility.

Nithin Chettoor (Assistant Manager) (388 Points)
Replied 27 November 2012

I accpet completely with Anjali!!! Thats the entries to be posted

1 Like

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 27 November 2012

Manish Sir , I have modified my Post and TDS will nt be reversed in the books of ABC because it has already been nullified but in the books of XYZ there will be reversal of Income tax payable account.

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 27 November 2012

Thanks Nittin

CA Manish (Job) (5264 Points)
Replied 27 November 2012

Originally posted by : ANJALI NEGI
	Manish Sir , I have modified my Post and TDS will nt be reversed in the books of ABC because it has already been nullified but in the books of XYZ there will be reversal of Income tax payable account.

According to you cancellation entries xyz is refunding only rs 495000/-. it mens it is not taking credit of TDS. But earlier you said xyz have to refund rs 500000 and it can cliam tds as refund.

haresh padariya (accountant) (21 Points)
Replied 03 June 2014

respected sir / mam, i am posting this query first time so please let me forgive if any mistake. i have one question that one pvt ltd company has file return in FY2009-10. during the same year company has interest income and expense. the parties who has paid interest has deducted tds.

but accountant has shown only resultant figure of interest expense.

now company has not filed return for three consecutive three year as there was no business.

now company is preparing to file the return so is there any chaces for TDS refund?

please guide me.

thanks

haresh