Kindly help : If I have paid to my employee June month's salary on july 5th and made my accounting entry on the same day. In which quarter should I take the tds entry?
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Tds on salary
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TDS ENTRY SHOULD PASSED ON THE DAY WHEN SALARY IS PAID.
SALARY A/C DR.
TDS A/C DR.
TO EMPLOYEE
AND IT WILL CONSIDER FOR 1ST QUARTER ITSELF.
REGARDS,
DS.
1st April to 30th June is first quarter.
TDS deducted from June salary in july.
TDS will belong to the first quarter.
I am booking the TDS entry on july 5th, and paying salary on the same date. Why should it not go in second quarter, as payment and booking of accounting entry both are in period of second quarter.
What if the salary pertains to the month of March? Will it be correct to book the TDS for the 1st quarter or the 4th quarter?
The salary pertains to the month of June, and so is the TDS. And so even if payment has been made in July, the salary pertains to the month of June, 1st quarter.
In some companies, they pass a JV on the last date of the month to make the salary payable and TDS provision. But in some companies, the salary and TDS is booked when it is paid the next month.
RIGHTLY EXPLAINED BY SIR MIHIR.
AS THE SALARY PERTAINS FOR JUNE AND SO IS THE TDS.SINCE, IT WILL BE CONSIDERED FOR 1ST QUARTER ITSELF.
REGARDS,
DS.
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