TDS Journal Entry

Suppose Expense is 100 you have to dedect TDS of Rs. 10. Entry will be

Expense Dr. 100

To bank 90

To TDS Payable 10

Agree.
 

Thank u guys..!! :)

Hi, to all

What is the TDS Journal entry?

in my view entry will be--
EX: if

Expensiture A/C----Dr   100

             To

TDS on Contract      10

Party A/C                    90

                 &

Party A/C  Dr-----90

   BankA/C         90

The correct entry for TDS is as follows:

Expenditure Account         Dr   100

Vendor Account                   Dr    10

 To  Vendor Account           Cr              100

        TDS on Contractors   Cr                 10

( Being the bill no xxx dated xxxx accounted and TDS @ 10% deducted )

If we pass the entry like above , the total invoice amount and TDS amount will reflect in Vendor account. It will be useful for vendor reconciliations at any time and also it will give true picture of Vendor account at any point of time. The net amount payble to Vendor will reflect as 90 in their account. ( Credit - for Invoice amount - 100 and Debit - for TDS recovery -  10 =  net credit 90)

Agreed perfectly correct

Hi, Devendra

I am fully agree with Mr. Ankit & Mr.Gouri Sankar

This is for one time payment so you are choose CA Ankit's answer

and

this for runing payment so you can choose Mr.Gouri Sankar's answer

Regards,

Rahul Sharma

Hi Rahul

Even if it is one / single  time payment, the vendor account should reflect his total bill value and the deduction of TDS amount in his account.

Hence there is no change for if it is a Single entry or multiple entries in Vendor account.

Gouri Sankar T

Journal entry for TDS is(On receipt of Bill)

Expenditure A/c Dr.10000

TO Party A/c 9000

To TDS payable 1000

On Payment

Party A/c Dr. 9000

Tds Payable Rs1000

To Cash/Bank  Rs.10000

in order to reflect in vendor account:

if due is early

Expenses a/c                               Dr 100

         To Party a/c                                          100

on same day 

party a/c                                        Dr   10

       To TDS Payable a/c                             10

on payment

party a/c                                       Dr  90

        To Bank a/c                                          90

If payment is early (advance)

party a/c                                      Dr 100

      To Bank a/c                                             90

      To TDS Payable a/c                               10

on receipt of bill/invoice

Expenses a/c                               Dr 100

         To Party a/c                                          100

what is the entry of tds in yhe book of supplier.

suppose spplier receive rs. 900 after deducting TDS of RS. 100