3/9/22, 8:32 AM Accounting entries when TDS is deducted - How to earn money through small savings

1. Accounting Entries for Professional payment under section 194J and TDS

deducted thereon @ 10%-

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 Professional Charges A/c Dr.  25,000   

Provision of expenses- To M/s XY & Associates A/c  25,000

  (Being amount of provision made)

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

To Bank A/c  25,000

- At the time of
(Being amount of fees paid to M/s XY & Associates,
payment of Fees-
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-

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Professional Charges A/c Dr. 35,000

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

- At the time of
To TDS payable on Professional fees A/c            3,500
Provision of expenses-
(Being provision of fees made to M/s XY &
 
Associates after deducting TDS @ 10%)

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

- At the time of To Bank A/c 31,500

payment of Fees- (Being amount of fees paid to M/s XY & Associates,

firm of Chartered Accountant)

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

- At the time of
To Bank A/c 3,500 
payment of TDS-
(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 –

 
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3/9/22, 8:32 AM Accounting entries when TDS is deducted - How to earn money through small savings

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

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

- At the time of
To M/s XY & Associates A/c 1,08,000
Provision of expenses-
To TDS payable on Professional fees A/c            10,000
 
(Being provision of fees made to M/s XY &

Associates after deducting TDS @ 10%)

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

- At the time of
To Bank A/c 1,08,000
payment of Fees-
(Being amount of fees paid to M/s XY & Associates,
 
firm of Chartered Accountant)

- At the time of TDS payable on professional fees A/c Dr. 10,000

payment of TDS- To Bank A/c 10,000          

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

See related posts : TDS rate hart (TDS-Rate-Chart)

2. Accounting Entries for Payment to contractor under section 194C and TDS

deducted for Individual/HUF @1% & Other than Individual/HUF @2%

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3/9/22, 8:32 AM Accounting entries when TDS is deducted - How to earn money through small savings

Particulars Accounting Entry

(i) Job Work charges paid to XY & company, partnership firm of Rs. 25,000

during the year, if TDS not Applicable-

Job work charges A/c Dr.  25,000         

- At the time of Provision
To M/s XY & Company A/c  25,000
of expenses-
(Being provision of fees made to M/s XY &
 
Company)

M/s XY & Company A/c Dr. 25,000      

- At the time of payment To Bank A/c 25,000

of contact amount- (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-

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3/9/22, 8:32 AM Accounting entries when TDS is deducted - How to earn money through small savings

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

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

- At the time of Provision
To TDS payable on Contractor A/c            2,500
of expenses-
(Being provision of fees made to M/s XY &
 
Company after deducting TDS @ 2%)

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

- At the time of payment To Bank A/c 1,22,500

of contact amount- (Being amount of payment maid to M/s XY &

Company)

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

- At the time of payment
To Bank A/c 2,500 
of TDS-
(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 –

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Job Work Charges  A/c Dr. 1,00,000

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

- At the time of Provision
To M/s XY & Company A/c 1,16,000
of expenses-
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 M/s XY & Company A/c Dr. 1,16,000

of contact amount- To Bank A/c 1,16,000

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

- At the time of payment TDS payable on Contractor A/c Dr. 2,000

of TDS- To Bank A/c 2,000 

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

See related posts : How to file Revised TDS Return (How-to-revised-TDS-

Return)

3. Accounting Entries for Payment of Salary under section 192 and TDS

deducted thereon-
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3/9/22, 8:32 AM Accounting entries when TDS is deducted - How to earn money through small savings

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/-

Salary A/c Dr.  3,10,000   

To Salary Payable A/c  2,50,000

- At the end of month the To ESI Payable A/c 12,000

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

To ESI Payable A/c  30,000

- Employer’ Contribution to ESI
(Being amount of Employer’s contribution
(30,000)-
to ESI)

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

PF Administration charges A/c Dr. 2,000

- Employer’ Contribution to PF
To PF Payable A/c  30,000
(28,000 + Admin Expenses
(Being amount of Employer’s contribution
2,000)-
to PF)

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

- At the time of payment of
To Bank A/c  2,50,000
salary-
(Being amount of salary paid)

ESI Payable A/c Dr. 42,000

To Bank A/c 42,000

- At the time of payment of ESI- (Being amount of ESI paid i.e.

(Employee's Contribution + Employer's

Contribution)

PF Payable A/c Dr. 58,000

To Bank A/c 58,000

- At the time of payment of PF-
(Being amount of PF paid i.e. (Employee's

Contribution + Employer's Contribution)

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3/9/22, 8:32 AM Accounting entries when TDS is deducted - How to earn money through small savings

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

- At the time of payment of TDS- To Bank A/c 20,000          

(Being amt of TDS u/s 192 deposited)

See related posts : TDS on Insurance Policy Payments under Section 194DA

(TDS-on-Insurance-Policy-Payments-under-Section-194DA)

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entries-
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when- when- when-

Comments TDS- TDS- TDS-

is- is- is-

Dinesh on 2/25/2022 3:20:42 AM says:
deducted)
deducted)
deducted

Awesome

Vishal Bansal on 2/24/2022 1:07:08 PM says:

For Accounting Entries in GST Please see my Blog-

https://enskyar.com/Blogs/Accounting-entries-under-GST

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