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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- Bank Accounts in Balance Sheet for ITR 3
- ITR validation error - Balance sheet is not filled
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Delisted shares sold in off market/ Rebate u/s87A
- Error whiling application of GST REFUND (ANNEXURE B)
- While filing GSTR9 accountant couldn't entered the ITC values in Table 6, in 9C it is not accepting
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
