close x


Accounting treatment when TDS is deducted

MCOM MBA ICWAI-Inter(Studying)

Dear All

First of all I  explain my doubt with the help of an example.Say Mr.A is working in a company  called A Ltd which is dealing in providing courier services.They provided  courier services to B Ltd for Rs.2800.Now when B Ltd  account this courier bill they deduct TDS at the rate of 2.060% (58 Rs) and give only 2742 (2800-58) credit to ALtd and they will issue TDS certificates also.Now my question is how A Ltd accounts this TDS.First  A Ltd are debiting Rs.2800/- to B Ltd,and B Ltd now only give Rs.2742 only.So through what entry A Ltd account this TDS deduction.I hope u people understand my querry.............Please share your views.

Thanks In Advance

BINUMS

 
Reply   
 
Chartered Accountant


cash/bank/Bltd a/c                2742

TDS a/c                                 58

To Courier service receipts                 2800

 
Reply   
 


Chartered Accountant


cash/bank a/c...................dr. 2742

TDS a/c .............................dr.    58

To B ltd.                                   2800

 
Reply   
 

Originally posted by :Annie
" cash/bank/Bltd a/c                2742
TDS a/c                                 58
To Courier service receipts                 2800
"


 

Please ensure before entry that the TDS a/c which is debited here is grouped under current assets. That amount will be adjusted with the tax liability of the co.

 
Reply   
 

In the books of A Ltd (Courier Company)

1>       Entry for Providing Service to B Ltd

           B Ltd A/c                                  2800

           To, Courier Service Receipt A/c                       2800

2>       Entry for receipt of payment from B Ltd

           Cash / Bank A/c                        2742

           Tax Deducted at Source A/c          58

           To, B Ltd A/c                                                 2800

 

 

 

 
Reply   
 

Hi

A Ltd can directly pass a single JV

First Entry by A Ltd

B Ltd A/c dr

To Courier Service

second to be passed is the JV

TDS A/c Dr

To B Ltd

 
Reply   
 
MCOM MBA ICWAI-Inter(Studying)

Dear All

Thanks for your valuable replies

Regards

BINU.M.S

 
Reply   
 

Hello frnds,

what ;my doubt is after getting TDS certificates from A ltd what entry B ltd will pass or how they reduce TDS ?

 
Reply   
 

I am eager to know about the TDS deduction

 
Reply   
 

i want to know tds entry how to do this entry receiving amount

what is the meaing of on account this sentence showing in tally on out standing

side please explaine me i am dhanunjaya p

 
Reply   
 

LEAVE A REPLY



    

Your are not logged in . Please login to post replies

Click here to login   Click here to Register



 



Share on :