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what is the treatment of TDS receivable & TDS payable (Income Tax)

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This query is : Resolved


( Author )
11 June 2010

Dear, sir\Madam
i would like to know that how will i record a transaction where i received Rs.900 after deducting Rs.100 Tds from a debtor.(journal entry. how will i adjust Tds? in the same manner what will be the journal entry, if i pay Rs.900 after deducting Tds?
Is it the case that the net of TDS receivable and payable will be paid to Govt.

Thanks in advance


CMA. CS. Sanjay Gupta

( Expert )
11 June 2010

NO TDS RECEIVABLE AND TDS PAYABLE CAN NOT BE SET OFF. TDS RECEIVABLE IS INCOME TAX PAID BY YOU ON YOUR INCOME AND TDS PAYABLE IS PAID BY YOU AFTER DEDUCTING THE SAME FROM DEDUCTEE. SO YOU ARE JUST DEDUCTING AND DEPOSITING.

ENTRY:

CASH/ BANK DR... 900
TDS RECEIVABLE 100
TO DEBTORS 1000


CA Ravi Kumar Murugesh

( Expert )
11 June 2010

For the receipt of Rs.900 after deducting Rs.100 TDS:

Bank A/c Dr Rs.900
TDS Receivable A/c(Current Asset) Dr Rs.100
Debtors A/c Cr Rs.1000


For the payment of Rs.900 after deducting Rs.100 to creditor:

Creditor A/c Dr Rs.1000
TDS payable A/c(Curr.liab) Cr 100
Bank A/c Cr Rs.900

When you pay TDS of above to the govt:
TDS payable a/c Dr.Rs.100
Bank A/c Cr Rs.100

When you receive TDS refund in first case:
Bank A/c Dr.Rs.100
TDS Receivable A/c Cr Rs.100

If you adjsuted against your tax liability:
Income Tax Exp A/c Dr.100
TDS Receivablke A/c Cr Rs.100



CA. BIJENDER KR. BANSAL

( Expert )
11 June 2010

AGREED WITH EXPERTS.
TDS RECEIVABLE IS THAT AMOUNT WHICH YOU WILL CLAIM IN HIS INCOME TAX RETURN.
WHILE TDS PAYABLE IS YOUR LIABILTIY WHICH YOU HAVE PAID.


CA.TAPAS DALAR

( Expert )
11 June 2010

100% agreeing with CA. Ravi kumar


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