what?

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Dear all

Rule for TDS is on credit or payment whichever is earlier, right? i have following doubts please clear!

1) suppose i credited the amount in books on dated 1st of april and make the payment entry on 2nd May then my TDS liability would be on????

2) suppose i credited the amount in books on dated 1st of april but now no need to pay any amount to the party due to some reasons then TDS liability arises or not? as i have already credited the amount in books

3) if no, then should i reverse the entry in books?

 

Thanks in adavance!

Replies (2)

yES, AS PER TDS RULE, TDS TO BE DEDUCTED DATE OF CREDIT OR DATE OF PAYMENT WHICHER IS EARLIER.

ANS 1 : IF YOU HAVE CREDITED BILL ON 1ST APRIL, THEN TDS WILL BE DEDUCTED ON THE SAME DAY, TDS TO BE DEPOSTIED TILL 7TH MAY ITSELF.

IT DOES NOT IMPACT THAT WHEN YOU ARE PAYING THE BILL AMOUNT

ANS 2 : IF YOU HAVE CREDITED BILL ON 1ST APRIL, THEN TDS WILL BE DEDUCTED ON THE SAME DAY, TDS TO BE DEPOSTIED TILL 7TH MAY ITSELF.

AFTER IT , IF YOU HAVE NO NEED TO PAY THE PARTY BILL AMOUNT. THEN YOU HAVE TO REVERSE NET AMOUNT WHICH IS IN THE BOOKS AS AMOUNT WRITTEN BACK A/C

 

YOU CAN ADJUST THIS TDS , IN SAME FINANICAL YEAR FOR THE BILL FOR SAME FINANCIAL YEAR ON WHICH TDS IS TO BE DEDUCTED.

3.

ENTRY FOR AMOUNT WRITTEN BACK

 

PARTY A/C       DR

TO AMOUNT WRITTEN BACK.               CR    (WITH NET AMOUNT DUE )

 

agreed with mr. bijender.

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