Tds of provision entry

Hii,
we made provision 5 lac provision with tds against 3 vendors.. tds already deposited that time only.. now we got invoices for final payment but there is difference of actual invoice and provision amount. 2 invoices are less than provision amt but one is more than provision amount.. due to that ther is diff of actual tds amount and deposit amount. can we adjust the same

thanks
Hemendra Negi
Replies (4)
Quick Summary
This discussion addresses a common accounting scenario where TDS provisions are made against vendors, but the final invoice amounts differ. The user has made a £500,000 provision with TDS for three vendors, but the actual invoices are not matching the provisioned amounts. The query is about whether the difference in TDS can be adjusted.

Tds provision made effectively against 3 vendors
Yes sir
Provisional entry can be made.

Provision with TDS later reversed or adjusted:
• If you made a year-end provision of Rs 5 lakh for 3 vendors, deducted TDS and deposited it, and the actual bills come later at different amounts:
– if the bill is higher, deduct TDS on the excess when booking
– if lower or not received, the excess TDS can be adjusted against future TDS for the same vendor in the same FY, or claimed as a refund (Form 26B) if not credited.
• Report as already done in the TDS return. Credit shows in the vendor's 26AS.

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