tds receivable point

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Shubhankitsoni (Querist)
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11 May 2019 if customer deducts TDS and paid net amount to vendor. then usually vendor at the time of closing of its books of account, book TDS receivable entry and gives credit to customer.

here the query comes: what Prudence Says ? at the time of closing of vendor books. TDS is not reflected in vendor's 26AS. there be a delay by customer in filling of its TDS return.

is it logical to book TDS receivable entry at the time of closing of books?

RAJA P M

RAJA P M (Expert)
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11 May 2019 Yeah... Basically will book the TDS as receivable as per the transaction. In case customer can't file or paid the deductible amount then You can keep the amount as Outstanding/ Receivables...

Kamal Kant Mittal

Kamal Kant Mittal (Expert)
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11 May 2019 Yes, Most of the companies posts the entry on the basis of TDS certificate received from Party.
More conservative approach would be to post entry on the basis of 26AS only.

Aashok Kumar Sharma online

Aashok Kumar Sharma

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05 May 2020 As Financial Statements and Income Statements are prepared as on a particular date to reflect true and fair view of the business organisation , TDS Receivable will need to be shown as Current Assets in Assets Side of Balance Sheet and it is fully logical and practiced everywhere.

Aashok Kumar Sharma online

Aashok Kumar Sharma

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