Accounting treatment and TDS
This query is : Resolved
30 May 2009
We had launched the scheme with our franchisees that if franchisee achieves the target then he will be alloted a new Car.
Now 2 of our franchisees have achieved their targets and are eligible for the Car.
So what will be the accounting treatment. Is it to be called as commission,an incentive or discount or any thing else.
My next question is about the applicability of TDS. Whether TDS will be attracted and if yes under what head.
Further we have not yet given the cars but while finalizing our books we need to take provision on the same so if TDS is applicable do we need to pay immediately.
Similarly we will have to recover TDS from the party since he is paid in kind. So is it a correct to recover the same from him
Thanks in advance
Now 2 of our franchisees have achieved their targets and are eligible for the Car.
So what will be the accounting treatment. Is it to be called as commission,an incentive or discount or any thing else.
My next question is about the applicability of TDS. Whether TDS will be attracted and if yes under what head.
Further we have not yet given the cars but while finalizing our books we need to take provision on the same so if TDS is applicable do we need to pay immediately.
Similarly we will have to recover TDS from the party since he is paid in kind. So is it a correct to recover the same from him
Thanks in advance
01 June 2009
tds needs to be deducted, also to be accounted for in the year in which expenses is intended to be claimed.
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