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Aug 27, 2007 at 06:39 AM

TDS clearing on Down Payment

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Dear All,

I am facing the following problem

1) When I make down payment to Vendor, EWT (i.e.TDS) is getting calculated.

i.e.Down PAyment Rs.50000. TDS calculated on it say Rs.500

2) Then as per I.T.Act, pay TDS to Govt by 7th of next month. So TDS A/c is getting cleared. Payment goes through bank.

3) When post final invoice (say Rs 100000) whenever it is received, say 2 months afterwards, system is calculation TDS on whole of Rs. 100000. To avoid this we used Base amount column & put in there Rs.50000. Now system calculate TDS on Rs.50000.

4) Real Problem comes now. When we clear Down Payment against The Invoice of Rs.100000 through F-54, system clears the down payment correctly but along with that REVERSES THE TDS DEDUCTED EARLIER RS 500 ALSO. ACTUALLY THIS TDS HAS ALREADY BEEN PAID TO THE GOVT & DUE TO THIS REVERSAL TDS ACCOUNT IS GETTING WRONG DEBIT FOR RS 500.

How to resolve this? I want the down payment to clear without reversing the TDS amount.

Pl help.

Be assured about points.

Gov