Tax Deducted at Source Example in Tally ERP 9

M/s. GRAND WORLD PVT LTD
No. 124/20, Nice land. M.G. Road,
Arunachala Pradesh-700562

The following would be recorded in double entry system and do the journal entries, ledger posting and prepare the Trial Balance, Trading A/c, Profit & Loss A/c and Balance Sheet and also implementing the Feature of Tax Deducted at Sources & Tax Collected at Sources of the above company for the Financial period 1.4.2010 to 31.3.2011

Particular	Dr	Cr
Capital		3,10,00,000
Reserves & surplus		2,75,000
Bills for collection	40,000
Debentures		13,00,000
Lease hold property	50,000
Indian Overseas Bank	80,00,000
Bank O/d		5,25,000
Cash	10,000
Royalties		50,00,000

Stock in hand:

Timber 6000 MT @ Rs.5000 each

TRANSACTION DURING THE PERIOD:

Apr09 M/s. Leaf co (Local Authority) wins the lottery ticket. So the company Decided to pay a winning amount for Rs.7,00,000 now as per section 194B, Payment code 94B, Deduct the tax 30% and Education cess 3%. The deducted taxable amount pays to Indian Overseas bank with TDS challan. And remaining amount paid to party by cheque

(Nature of payment: winning from lotteries and crossword puzzles)

Jun15 M/s. Grand world (P) ltd has decided to pay an Rent of Building Rs.3,00,000 to pay a party M/s. Harry potter (Company resident) now as Per section 1941 and payment code 941, Deduct the tax 20% and Education cess 3%. The deducted taxable amount pays to Indian Overseas Bank with TDS challan.

(Nature of Payment: Rent of land, building and furniture’s)

Jul 9 M/s. Grand world (P) ltd has decided pay an Royalty Rs.6,00,000 pay to M/s. Garden international (Individual/HUF-non resident) if Agreement is Made on or after june1, 2005 now as per Section195 and payment code 195 Deduct the tax 10% and Education cess 3%. The deducted taxable amount Pays to Indian Overseas bank with TDS challan.

(Nature of Payment: Royalty (G) Agreement is made on or after June 1 ,2005 )

Aug 12 Amount paid to M/. TATA consultancy (Artificial juridical person), To word Rs.6,00,000 the TDS nature of payment: Insurance Commission. Now as per section 194D deduct the TDS value Pay to the bank and Remaining amount paid to TATA consultancy

(Nature of payment: Insurance commission)

Sep01 Sold on credit from M/s. National Traders (Association of person) for the Following item: Timber 5000 MT @ R.10000each. To collect TCS as per section 206C Payment code: 6C (Bill no: 157, 30 days). Amount fully received and tax Amount paid to income tax department.

(TCS nature of goods: Timber Obtained Under forest lease)

Oct 8 TCS amount received for Rs.3,50,000 by cheque from M/s. TMR & CO (Body of individual) for license lease relating to parking lots as per Section 206C payment code 6CF