Accounting entries when TDS is deducted

Particulars

Accounting Entry

(i) Professional fees paid to XY & Associates, firm of Chartered Accountant of Rs. 25,000 during the year, if TDS not Applicable-

- At the time of Provision of expenses-

Professional Charges A/c Dr.  25,000   

To M/s XY & Associates A/c  25,000

(Being amount of provision made)

- At the time of payment of Fees-

M/s XY & Associates A/c Dr. 25,000     

To Bank A/c  25,000

(Being amount of fees paid to M/s XY & Associates, firm of Chartered Accountant)

(ii) Professional fees paid to XY & Associates, firm of Chartered Accountant of Rs. 35,000 during the year, when TDS is Applicable-

- At the time of Provision of expenses-

Professional Charges A/c Dr. 35,000

To M/s XY & Associates A/c 31,500

To TDS payable on Professional fees A/c            3,500

(Being provision of fees made to M/s XY & Associates after deducting TDS @ 10%)

- At the time of payment of Fees-

M/s XY & Associates A/c Dr. 31,500

To Bank A/c 31,500

(Being amount of fees paid to M/s XY & Associates, firm of Chartered Accountant)

- At the time of payment of TDS-

TDS payable on professional fees A/c Dr. 3,500

To Bank A/c 3,500 

(Being amt of TDS u/s 194J deposited)

(iii) If GST charged on Professional fees, paid to XY & Associates, firm of Chartered Accountant of Rs. 1,00,000 + GST of Rs. 18,000 i.e. totaling to Rs. 1,18,000 during the year –

- At the time of Provision of expenses-

Professional Charges        A/c Dr. 1,00,000

IGST or CGST or SGST Receivable A/c Dr. 18,000

To M/s XY & Associates A/c 1,08,000

To TDS payable on Professional fees A/c            10,000

(Being provision of fees made to M/s XY & Associates after deducting TDS @ 10%)

- At the time of payment of Fees-

M/s XY & Associates A/c Dr. 1,08,000

To Bank A/c 1,08,000

(Being amount of fees paid to M/s XY & Associates, firm of Chartered Accountant)

- At the time of payment of TDS-

TDS payable on professional fees A/c Dr. 10,000

To Bank A/c 10,000          

(Being amt of TDS u/s 194J deposited)

Particulars

Accounting Entry

(i) Job Work charges paid to XY & company, partnership firm of Rs. 25,000 during the year, if TDS not Applicable-

- At the time of Provision of expenses-

Job work charges A/c Dr.  25,000         

To M/s XY & Company A/c  25,000

(Being provision of fees made to M/s XY & Company)

- At the time of payment of contact amount-

M/s XY & Company A/c Dr. 25,000      

To Bank A/c 25,000

(Being amount of fees paid to M/s XY & Company)

(ii) Job Work charges paid to XY & Company, Partnership firm of Rs. 1,25,000 during the year, when TDS is Applicable-

- At the time of Provision of expenses-

Job work Charges A/c Dr. 1,25,000

To M/s XY & Company A/c 1,22,500

To TDS payable on Contractor A/c            2,500

(Being provision of fees made to M/s XY & Company after deducting TDS @ 2%)

- At the time of payment of contact amount-

M/s XY & Company A/c Dr. 1,22,500

To Bank A/c 1,22,500

(Being amount of payment maid to M/s XY & Company)

- At the time of payment of TDS-

TDS payable on Contractor A/c Dr. 2,500

To Bank A/c 2,500 

(Being amt of TDS u/s 194C deposited)

(iii) If Job Work charges paid to XY & Company, Partnership firm of Rs. 1,00,000 + GST of Rs. 18,000 i.e. totaling to Rs. 1,18,000 during the year –

- At the time of Provision of expenses-

Job Work Charges  A/c Dr. 1,00,000

IGST or CGST or SGST Receivable A/c Dr. 18,000

To M/s XY & Company A/c 1,16,000

To TDS payable on Contractor A/c            2,000

(Being provision of payment made to M/s XY & Company after deducting TDS @ 2%)

- At the time of payment of contact amount-

M/s XY & Company A/c Dr. 1,16,000

To Bank A/c 1,16,000

(Being amount paid to M/s XY & Company)

- At the time of payment of TDS-

TDS payable on Contractor A/c Dr. 2,000

To Bank A/c 2,000 

(Being amt of TDS u/s 194C deposited)

Particulars

Accounting Entry

(i) For Payment of Total Salary of Rs. 2,50,000/- after deducting TDS of Rs. 20,000/-, ESI of Rs. 12,000/- and PF of Rs. 28,000/-

- At the end of month the provision-

Salary A/c Dr.  3,10,000   

To Salary Payable A/c  2,50,000

To ESI Payable A/c 12,000

To PF Payable A/c 28,000

To TDS payable on Salary A/c 20,000

(Being provision of salary made at the end of month)

- Employer’ Contribution to ESI (30,000)-

Employer’s Contribution to ESI A/c Dr. 30,000

To ESI Payable A/c  30,000

(Being amount of Employer’s contribution to ESI)

- Employer’ Contribution to PF (28,000 + Admin Expenses 2,000)-

Employer’s Contribution to PF A/c Dr. 28,000

PF Administration charges A/c Dr. 2,000

To PF Payable A/c  30,000

(Being amount of Employer’s contribution to PF)

- At the time of payment of salary-

Salary Payable A/c Dr. 2,50,000

To Bank A/c  2,50,000

(Being amount of salary paid)

- At the time of payment of ESI-

ESI Payable A/c Dr. 42,000

To Bank A/c 42,000

(Being amount of ESI paid i.e. (Employee's Contribution + Employer's Contribution)

- At the time of payment of PF-

PF Payable A/c Dr. 58,000

To Bank A/c 58,000

(Being amount of PF paid i.e. (Employee's Contribution + Employer's Contribution)

- At the time of payment of TDS-

TDS payable on Salary A/c Dr. 20,000

To Bank A/c 20,000          

(Being amt of TDS u/s 192 deposited)