Entries In The Books Of Deductor (Without Gst)

Case 1: Bill First, Then Payment                                                          

Entry at the time of Expense                                                                    

            Expense A/C      Dr

                      To Party A/C                                                              

                      To TDS A/C                                                                   

Entry at the time of Payment

            Party A/C    Dr                                                         

                     To Bank A/C

Illustration: Suppose There Is An Expense Bill Of ₹ 20000 On Which 10% TDS To Be Deducted.          

Entry at the time of Expense 

            Expense A/C     Dr                 20000                                     

                     To Party A/C                             18000                         

                      To TDS                                      2000                         

Entry at the time of Payment

            Party A/C Dr                         18000                                     

                    To Bank A/C                             18000            

 

Case 2: Payment First, Then Bill                                                                       

Entry at the time of Payment

            Party A/C        Dr                                                                 

                   To Bank A/C                                                                    

                   To TDS                                                                 

Entry at the time of Expense                                                                 

            Expense A/C     Dr                                                                

                    To Party A/C                                                                

                                                                                   

Illustration: Suppose There Is An Expense Bill Of ₹ 20000 On Which 10% TDS To Be Deducted.                                                          

Entry at the time of Payment

            Party A/C    Dr                      20000                                     

                     To Bank A/C                                  18000                         

                     To TDS                                           2000                           

Entry at the time of Expense                                                           

            Expense A/C      Dr                20000                                     

                    To Party                                         20000                          

  

Case 3: First Advance Payments Then Expense, Balance Pay                                            

Entry at the time of Payment

            Party A/C    Dr                                                                     

                    To Bank A/C                                                                   

                    To TDS  A/c                                                             

 Entry at the time of Expense 

            Expense A/C     Dr                                                                

                    To Party   A/c                                                                    

                    To TDS   A/c                                                            

Balance Payment

            Party A/C     Dr                                                                    

                    To Bank A/C                                                                   

Illustration: Suppose There Is An Expense Bill Of ₹ 20000 On Which 10% TDS To Be Deducted. Advance Paid ₹ 5000.                                                  

Entry at the time of Payment                                                                

            Party A/C      Dr                    5000                                       

                    To Bank A/C                          4500                           

                    To TDS                                   500                             

 Entry at the time of Expense 

            Expense A/C      Dr                20000                                     

                     To Party                                        18500                         

                     To TDS                                            1500                         

Entry at the time of Balance Payment

            Party A/C Dr                           13500                                     

                       To Bank A/C                                 13500                 

♦ Is TDS To Be Deducted On GST Component Included In Payments?                                                                               

                                                                                   

No, TDS to be deducted on the amount paid without including such GST component.                                                                          

   Expense Amount             10,000

                   GST                  1,800

        Gross Total                 11,800

         Less: TDS                   1,000

          Net Total                   10,800             

Entries In The Books Of Deductor (With Gst)

Case 1: Bill First, Then Payment                                                                                   

Entry at the time of Expense Expense

            Expense A/C       Dr               10000                                     

            CGST A/C             Dr                     900                                               

            SGST A/C             Dr                     900                                               

                       To Party A/C                                         10800                                  

                        To TDS A/C                                           1000          

Entry at the time of Payment

            Party A/C          Dr                  10800                                              

                      To Bank A/C                                           10800                        

Case 2: Payment  First, Then Bill

Entry at the time of Payment

            Party A/C          Dr                11800                                     

                       To Bank A/C                                          10800                                   

                       To TDS                                                   1000                                             

Entry at the time of Expense 

            Expense A/C        Dr              10000                                     

            CGST A/C              Dr                900                                    

            SGST A/C              Dr                900                                    

                     To Party                                                   11800                         

Case 3: First Advance Payment Then Expense, Balance Pay  (40% Advance)                                      

Entry at the time of Payment

            Party A/C          Dr                4720                                      

                     To Bank A/C                                          4320                           

                     To TDS                                                   400                          

Entry at the time of Expense 

            Expense A/C       Dr               10000                                     

            CGST A/C             Dr                 900                                    

            SGST A/C             Dr                 900                                               

                   To Party                                                   11200                                   

                   To TDS                                                       600                                   

Entry at the time of Balance Payment

            Party A/C          Dr                       6480                                       

                     To Bank A/C                                            6480