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TDS on advance bill

Avinash Jeevan Dsouza (Accounts Officer & In charge) (3298 Points)

07 April 2020

We have paid Rs 3,00,000 to catering business and taken TDS at 1% on 19-03-2020 for FY 2019-20.
Now catering fellow as given bill dated 04-04-2020 for FY 2020-21 for Rs 8,00,000/-.

What to do now?

We need to take TDS for Rs. 5,00,000/-

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9 Replies

V P Narasimhan (Accounts Manager) (793 Points)
Replied 07 April 2020

Provision can be made & deduction TDS also can be made. Otherwise a split upbill can be requested for two differential FY and acc*nt the same accordingly.

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Mandakulathur Ananthanarayanan (186 Points)
Replied 07 April 2020

TDS shall be made on balance rs. 5 lakhs in April month and paid on May 7, 2020

Avinash Jeevan Dsouza (Accounts Officer & In charge) (3298 Points)
Replied 07 April 2020

So same shall be treated for FY 2020-21 of Rs. 5,00,000/-. Will not be problem for the supplier ?

Avinash Jeevan Dsouza (Accounts Officer & In charge) (3298 Points)
Replied 07 April 2020

Originally posted by : V P Narasimhan
	Provision can be made & deduction TDS also can be made. Otherwise a split upbill can be requested for two differential FY and acc*nt the same accordingly.

Will it be possible to split? Will not be a problem for GST?

Mandakulathur Ananthanarayanan (186 Points)
Replied 07 April 2020

No. The supplier would have received TDS credit for rs. 3,00,000 in FY 2019-20 but since he will declare his income only in FY 2020-21, the TDS credit would not be availed. Now, in FY 2020-21, the supplier will declare Rs. 8,00,000 as income and take credit of TDS paid for rs. 3,00,000 and balance rs. 5,00,000 in FY 2020-21

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 07 April 2020

@ Mr Avinash Jeevan Dsouza.,

You must be deduct (already You deducted) for the payment of 3lakhs which is paid FY 19-20...

Don't be confuse for the bill received in FY 20-21. You will deduct TDS against Rs 5 lakhs in FY 20-21...

Avinash Jeevan Dsouza (Accounts Officer & In charge) (3298 Points)
Replied 07 April 2020

Originally posted by : RAJA P M
	@ Mr Avinash Jeevan Dsouza., You must be deduct (already You deducted) for the payment of 3lakhs which is paid FY 19-20...Don't be confuse for the bill received in FY 20-21. You will deduct TDS against Rs 5 lakhs in FY 20-21...

So as per our books we have deducted tax for 3 lakh in FY 2019-20
balance 5 lakh in FY 2020-21
and booked the expenses in FY 2020-21