Accounting treatment when TDS is deducted

cash/bank/Bltd a/c                2742

TDS a/c                                 58

To Courier service receipts                 2800

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

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

To B ltd.                                   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.

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

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

Dear All

Thanks for your valuable replies

Regards

BINU.M.S

Hello frnds,

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

I am eager to know about the TDS deduction

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

 My Client is a insurance agent of A private insurance company & the insurance commisson that he receives is only source of his income.For the Fyr 2007-08 ,TDS Has been deducted from his commisson .What is the amont of TDS can he claim as refund & under what Head is insurance commisson displayed in ITR-4.He does not maintain   proper books of accounts, DoesThe position change if the gross commisson he recevives is  less than Rs 60000.

kindly let me know the treatment of input credit availed  in accounts.

that is we are paying sales tax after deducting the input credit availed during the month. how should it be treated in accounts?

To, Suba,

1. For recording Input Credit in respect of sales tax, an current asset account named "Input Sales Tax" should be created. When Purchase entry is recorded the portion of Sales tax on purchases should be debited to "Input Sales Tax" account.

2. Sales Tax Payable on Sales should be recognised as a liability.

3. At the time of payment following treatment should be given
Output Sales Tax Liability A/c Dr.. Full Amount
                  To Input Sales Tax A/c                            Setoff Available
                  To Bank A/c                                               Payment as per challan

hi,

i have repaire a car and Contractor gave me a invoice , i was being Charge Separtly for Servicing and seperate for item input in my car. now i want to know as i run a sofrware servicing company. shoul i chare tds on his tolat invoice(32000 for item + 6000 for servicing) or tds only on 4000 or i should not charge tds because it is charging only 4000 as servicing charge.

i am confused. plz tell me what should i do?