Accounting of buying property with tds applicable u/s194ia.

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2016 we having partnership Firm, sign MOU of NonAgriculture Land of Rs 2,00,00,000/ on 19th August,2015. And Paid Amount of Rs 1,80,00,000/ as
advance on 19th August,2015 and remaining will be paid at time of final sale deed. Apart from this e deduct TDS on 29th March, 2016 on 1,80,00,000
as 1% So TDS amount Rs. 180000 and interest of rs 21600 Total Tax Payment 2,01,600/.
My Question
1) What are Accounting Entries required for these transaction.
2) As sale deed not exist only MOU made by Firm, so amount paid in advance will be shown in balance sheet as advance payment or what? As My
firm are in construction business so Land will be as stock or as capital?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 April 2016 1 Keep all the amount including TDS payment under advance. TDS interest payment charge it to revenue.
2 Show it as advance payment in balance sheet.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2016 Thanks a lot sir, For your valuable suggestions.

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